USD/JPY levels to watch after the parabolic surge – Confluence Detector

Dollar/yen has surged vertically in a mix of dollar strength, concerns about the Japanese economy, triggering of stops, and other factors. The currency pair is now some 150 pips higher. What levels should we be watching? 

The Technical Confluences Indicator is showing that USD/JPY is clinging to the 111.40 level, which is a cluster of lines including the Simple Moving Average 5-15m, the SMA 10-15m, the Pivot Point one-month Resistance 2, and the Bollinger Band 4h-Upper. 

Resistance awaits at 111.96, which is the confluence of the Fibonacci 161.8% one-month and the PP one-day R1. 

The next upside target is 112.42, which is where last year’s high and the PP one-month R3 converge. 

Looking down, support awaits at 110.95, which is a juncture of lines including the SMA 100-15m and the Fibonacci 38.2% one-day. 

The downside target is 110.18, a dense cluster of lines that consists of the previous weekly high, the BB 4h-Middle, the PP one-week R1, the SMA 100-1h, and the SMA 5-one-day. 

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.

Learn more about Technical Confluence