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USD/JPY looks ready to rally ahead of the Fed

USD/JPY has stabilized in the mid-111.00s as tension mounts ahead of the Fed decision. The technical levels clearly point to the upside for the pair.

The  Technical Confluences Indicator  shows a very dense cluster awaits dollar/yen around  111.50. It includes the Fibonacci 38.2% one-week, the Simple Moving Average 100-1h, the previous daily high, the Bollinger Band 15min-Middle, the SMA 200-1d, the BB 4h-Middle, the SMA 50-15m, the previous monthly high, the Fibonacci 61.8% one-day, the SMA 100-15m, the SMA 100-4h, the SMA 100-1h, the SMA 5-4h, the SMA 200-15m, and the Bollinger Band 1h-Middle.

If USD/JPY loses the line, it enjoys another considerable cushion at  110.92  where we note the convergence of the SMA 200-4h, the previous weekly low, the PP 1w-S3, and the Fibonacci 23.6% one-month.

Looking up, resistance is weaker. At  111.97, the confluence of the PP 1d-R3, and PP one-week R1 await the pair.

Further up,  112.43  is a worthy upside target as this is another meeting point of two Pivot Points: the one-week R2 and the PP one-month R1.

All in all, the path of least resistance is to the upside.  

Here is how it looks on the tool:

Dollar yen confluence March 20 2019 Fed day

 

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.