Sell-stop LQ under 107 may fuel a buy from HTF demand
USD/JPY:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Since kicking off 2017, USD/JPY has been busy carving out a descending triangle pattern between 118.66/104.62.
The month of March concluded by way of a long-legged doji candlestick pattern, ranging between 111.71/101.18, with extremes piercing the outer limits of the aforementioned descending triangle formation. April was pretty uneventful, ranging between 109.38/106.35. May also remained subdued, ranging between 108.08/105.98, with June currently off best levels, down 0.8%.
Areas outside of the noted triangle pattern can be seen at supply from 126.10/122.66 and demand coming in at 96.41/100.81.
Daily timeframe:
Partially altered from previous analysis –
Demand at 105.70/106.66 welcomed price action Thursday and, as you can see, put forth a mild bullish recovery. Despite this, impetus is still lacking, threatening a dive into the aforesaid demand.
To the upside, the 200-day simple moving average at 108.40 can be seen as the next possible resistance.
H4 timeframe:
Supply at 107.51/107.76 (prior demand), albeit initially echoing a fragile tone, sent USD/JPY southbound Wednesday. Thursday followed through and whipsawed beyond support at 106.91 to challenge demand at 106.49/106.66, an area fixed at the top edge of daily demand at 105.70/106.66.
H1 timeframe:
Early trade watched H1 burrow through 107 and strike the top edge of H4 and daily demand at 106.66.
Sellers appear to be reluctant to commit under 107, with price attempting to retake control of the level into Asia this morning. Territory above 107 throws light on the 100-period simple moving average, followed by trendline resistance (prior support – 107.00).
Structures of Interest:
Protective stop-loss orders from traders that attempted to fade 107 were tripped in recent movement, and breakout sell-stop entry orders were also filled. In light of this liquidity, a long from daily and H4 demand made sense. Therefore, a H1 close above 107 could prove fruitful.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Since kicking off 2017, USD/JPY has been busy carving out a descending triangle pattern between 118.66/104.62.
The month of March concluded by way of a long-legged doji candlestick pattern, ranging between 111.71/101.18, with extremes piercing the outer limits of the aforementioned descending triangle formation. April was pretty uneventful, ranging between 109.38/106.35. May also remained subdued, ranging between 108.08/105.98, with June currently off best levels, down 0.8%.
Areas outside of the noted triangle pattern can be seen at supply from 126.10/122.66 and demand coming in at 96.41/100.81.
Daily timeframe:
Partially altered from previous analysis –
Demand at 105.70/106.66 welcomed price action Thursday and, as you can see, put forth a mild bullish recovery. Despite this, impetus is still lacking, threatening a dive into the aforesaid demand.
To the upside, the 200-day simple moving average at 108.40 can be seen as the next possible resistance.
H4 timeframe:
Supply at 107.51/107.76 (prior demand), albeit initially echoing a fragile tone, sent USD/JPY southbound Wednesday. Thursday followed through and whipsawed beyond support at 106.91 to challenge demand at 106.49/106.66, an area fixed at the top edge of daily demand at 105.70/106.66.
H1 timeframe:
Early trade watched H1 burrow through 107 and strike the top edge of H4 and daily demand at 106.66.
Sellers appear to be reluctant to commit under 107, with price attempting to retake control of the level into Asia this morning. Territory above 107 throws light on the 100-period simple moving average, followed by trendline resistance (prior support – 107.00).
Structures of Interest:
Protective stop-loss orders from traders that attempted to fade 107 were tripped in recent movement, and breakout sell-stop entry orders were also filled. In light of this liquidity, a long from daily and H4 demand made sense. Therefore, a H1 close above 107 could prove fruitful.
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