USD/JPY technical lines drawn as trade uncertainty persists – Confluence Detector

Yohay Elam FXStreet

Dollar/yen has been on the back foot amid doubts that the US and China are able to strike a trade deal. Looking at the charts, the technical battle lines are well-drawn.

The Technical Confluences Indicator is showing that USD/JPY is capped by a dense cluster of resistance at 108.75, which includes the Bollinger Band one-day Middle, the Simple Moving Average 100-4h, the SMA 5-4h, the SMA 100-15m, the SMA 100-1h, the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-day, the Fibonacci 38.2% one-week, and more.

Higher up, another substantial cap awaits at 109.36, which is the convergence of the Pivot Point one-day Resistance 2, the PP 1w-R1, the previous monthly high, the previous weekly high, the BB 1d-Upper, and the PP 1m-R1.

Support awaits at 108.24, which is the confluence of the SMA 5-one-day, the PP 1w-S1, the PP 1d-S2, the Fibonacci 61.8% one-month, and the previous weekly low.

Further down, weak support is at 107.72, which is where the SMA 100-1d and the PP 1w-S2 converge.

Here is how it looks on the tool:

USD JPY confluence analysis November 19 2019

Confluence Detector

The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.

Learn more about Technical Confluence

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

AUD/USD hits nine-week lows below 0.7000 on RBA Bullock's remarks

AUD/USD reverses a brief uptick and turns lower to hit nine-week lows below 0.7000 in the European morning on Tuesday, as traders digest cautious remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock during the press conference. Earlier on, the RBA raised the cash rate to 4.60%, as widely expected, leaving the door open to further rate hikes if needed.

USD/JPY consolidates near 157.50 as a bullish USD counters intervention risks

USD/JPY struggles to capitalize on the overnight bounce from a one-week low, consolidating around 157.50 in the Asian session on Tuesday. Trump's concerns about the Japanese Yen's weakness fueled speculation about another US-Japan joint intervention. This, along with the hawkish BoJ, underpins the JPY and caps the currency pair. Meanwhile, rising Fed rate-hike bets and oil-driven inflation fears continue to push US bond yields to multi-year highs, keeping the US Dollar pinned near a two-month high and supporting the pair.

Gold steadies after sharp drop as traders assess Fed outlook, Middle East risks

Gold steadies on Tuesday after suffering a sharp sell-off at the start of the week. The move appears to be a corrective bounce, as the broader narrative remains tied to expectations of further Federal Reserve interest rate hikes.

Chainlink trims gains after CCIP 2.0 launch, Swift ledger integration

Chainlink (LINK) edges below $15.00 on Tuesday, trimming its 10% gains from the previous day, driven by the launch of its new Cross-Chain Interoperability Protocol 2.0 and Swift ledger integration for tokenized deposits and 24/7 cross-border payments.

Focus turns to US job openings

In the euro area, focus turns to the September flash inflation print for Spain which will give the first indication of where the euro area data on Friday lands. We expect a modest rise in headline due to higher energy costs and a small increase in core inflation. We also receive the European Commission's business survey for September.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.