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Dollar/yen has been on the back foot amid doubts that the US and China are able to strike a trade deal. Looking at the charts, the technical battle lines are well-drawn.

The  Technical Confluences Indicator  is showing that USD/JPY is capped by a dense cluster of resistance at 108.75, which includes the Bollinger Band one-day Middle, the Simple Moving Average 100-4h, the SMA 5-4h, the SMA 100-15m, the SMA 100-1h, the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-day, the Fibonacci 38.2% one-week, and more.

Higher up, another substantial cap awaits at 109.36, which is the convergence of the Pivot Point one-day Resistance 2, the PP 1w-R1, the previous monthly high, the previous weekly high, the BB 1d-Upper, and the PP 1m-R1.

Support awaits at 108.24, which is the confluence of the SMA 5-one-day, the PP 1w-S1, the PP 1d-S2, the Fibonacci 61.8% one-month, and the previous weekly low.

Further down, weak support is at 107.72, which is where the SMA 100-1d and the PP 1w-S2 converge.  

Here is how it looks on the tool:

USD JPY confluence analysis November 19  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