H1 demand at 107.16/107.26 back in play

8 июл. 2020 г.

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.

April and May were pretty uneventful, with June also wrapping up indecisively in the shape of a neutral doji candlestick pattern.

Areas outside of the noted triangle can be seen at supply from 126.10/122.66 and demand coming in at 96.41/100.81.

Daily timeframe:

Brought forward from previous analysis -

Despite failing to connect with the 200-day simple moving average at 108.37 last week, upside momentum came to an abrupt halt and fashioned a bearish outside day.

Having seen an indecisive tone take over the pair of late, light still shines on a possible run back to demand at 105.70/106.66.

H4 timeframe:

Partially altered from previous analysis -

Demand at 107.03/107.28 remains a key feature on the H4 timeframe, despite price failing to journey above 107.70. It should also be noted, in case we cross into deeper water, we have a trendline support lurking just beneath the current demand zone, drawn from 106.58.

H1 timeframe:

Intraday navigated through 107.50 during early US trade Wednesday and, within the space of three dominant H1 bearish candles, we witnessed price make contact with demand at 107.16/107.26 (located within the upper boundary of H4 demand).

Buyers, as you can see, are attempting to make a show, confirmed by bullish RSI divergence.

Failure to hold here will throw light on the 107 level and associated trendline support (prior resistance – 107.45).

Structures of Interest:

A rally from H1 demand at 107.16/107.26 is a possibility, due to its connection with H4 demand at 107.03/107.28.

Traders will also mark 107 as viable support on the H1, a level joining with H1 trendline support (107.45), as well as another trendline support from the H4 timeframe (106.58).