USD/JPY has been looking for a new direction after a tumultuous week that saw ups and downs. Where next for this major pair?
The Technical Confluences Indicator is showing that USD/JPY enjoys robust support at 108.45, which is the convergence of the Fibonacci 38.2% one-week, the Bollinger Band one-day-Middle, the Fibonacci 38.2% one-day, the Simple Moving Average 5-one-day, the Fibonacci 23.6% one-day, and the SMA 100-15m.
Close by, the next cushion awaits at 108.27, which is the meeting point of the Fibonacci 61.8% one-month, the Fibonacci 23.6% one-week, and the Pivot Point one-day Support 1.
The next support line is also significant. At 107.93, we find the confluence of the previous weekly low and the PP one-day S2.
Looking up, some resistance is at 109.06, which is a juncture including the PP one-day R2, the PP 1w-R1, and the SMA 200-one-day.
Next, another cap awaits at 109.35, which is where the BB one-day Upper and the PP one-month R1 meet.
All in all, resistance is stronger than support.
Here is how it looks on the tool:
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.
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