Home USD/JPY gets comfortable above 110 and for good reasons
Daily Look

USD/JPY gets comfortable above 110 and for good reasons

USD/JPY has surpassed the 110.00 level as the greenback’s strength outweighed safe-haven flows. What levels should we watch out for?

The  Technical Confluences Indicator  shows that USD/JPY has massive support around  109.80  where a dense cluster of levels awaits it. That includes the Fibonacci 161.8% one-month, the Bollinger Band 4h-Middle, the Simple Moving Average 200-1h, the Fibonacci 38.2% one-week, the Fibonacci 61.8% one-day, the Pivot Point one-day Support 1 and more.

If it breaches this support region, the next significant support is at  109.09  where the Fibonacci 161.8% one-day and the PP 1m-S3 converge.

Its initial upside target is  110.51 to 110.68  region where we note the SMA 100-4h, the SMA 100-1d, the PP 1w-R1, the PP 1d-R2, and the PP 1m-S1.

Looking to higher ground, USD/JPY may target  111.42  where we note a confluence including the Fibonacci 61.8% one-month and the SMA 200-1d.

Here is how it looks on the tool:

Bitcoin Ethereum Ripple May 20 2019

 

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.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.