H1 seeking bullish strategies off demand at 107.12/107.02

25 июн. 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.

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 0.6%.

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 -

USD/JPY came out swinging from demand at 105.70/106.66 Wednesday, printing a bullish inside candle pattern. Thursday extended gains though wrapped up quite a way off best levels.

The 200-day simple moving average at 108.37 has been flattening since mid-March – represents achievable resistance should a continuation to the upside come to fruition.

Dethroning current demand, on the other hand, possibly leads price action to nearby support at 105.01, with a break uncovering demand at 100.68/101.85.

H4 timeframe:

Supply at 107.22/107.03, a rally-base-drop formation, threw in the towel Thursday and potentially liberated buyers to supply coming in at 107.51/107.76.

Technically, the abandoned supply may offer demand today, enough to perhaps propel the pair towards 107.51/107.76, with a break possibly charting the way towards resistance at 108.09.

H1 timeframe:

A similar scenario to H4 is seen on the H1 timeframe, as early trade sailed through 107, the trendline resistance (107.62) and supply at 107.12/107.02, with the latter currently serving as demand.

Above current price, aside from 107.50, we see limited supply until coming into contact with 107.86/107.67, an area glued to the upper limit of H4 supply at 107.51/107.76.

Structures of Interest:

Daily, H4 and H1 timeframes suggest scope to climb. As a result of this, we likely have H1 traders seeking bullish strategies off demand at 107.12/107.02, with 107.50 denoting a possible target (also underlines the lower edge of H4 supply).