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:
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.
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