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USD/JPY has risen as the US and China reached a trade truce. Can it continue higher? The technical levels show that the path of least resistance is to the upside.  

The  Technical Confluences Indicator  is showing that USD/JPY has significant support at 107.93, which is the convergence of the Fibonacci 38.2% one-week, the Simple Moving Average 100-1h, the SMA 5-one-day, and the Fibonacci 23.6% one-month.  

Even stronger support awaits at 107.47, which is the confluence of the Bollinger Band 4h-Lower, the Fibonacci 38.2% one-month, the SMA 200-4h, the SMA 200-1h, and the SMA 50-4h.  

Looking up, resistance is considerably weaker. At 108.38, there is a dense cluster of lines, but they are not as significant as the ones composing the support lines. This cluster includes the Fibonacci 38.2% one-day, the Bollinger Band 1h-Middle, the SMA 5-1h, the SMA 5-4h, the SMA 10-4h, the SMA 50-15m, and the SMA 10-1h.  

The upside target is 109.17, which is the meeting point of the Pivot Point one-month Resistance 1, the PP 1w-R1, the SMA 200-daily, and the PP 1d-R3.

Here is how it looks on the tool:

USD JPY confluence analysis October 15 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.

Learn more about Technical Confluence