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The  Technical Confluences Indicator shows that the  USD/JPY  has lots of support at around ¥106.80. This area is the convergence of the Fibonacci 38.2% one-week, the Bolinger Band 15m Lower (Stdv. 2.2), the SMA5-4h, the Bolinger Band 1h-Middle, the SMA200-1h, the SMA50-4h, and the Fibonacci 23.6% one-day.

On the other hand, there are only weaker and sparser technical resistance levels on the way up. The notable are is   ¥107.50, where we find a small but powerful cluster of resistance levels: the one-month high, the one-week high, the Pivot Point one-month R1, and the Pivot Point one-day R2.

Looking down, the next congestion of support levels is relatively close at   ¥106.35  where the following lines meet: the SMA200-4h, the Bolinger Band one-day Middle, the SMA100-4h, the Pivot Point one-day S2, and the Fibonacci 61.8% one-month.

All in all, the path of least resistance is to the upside as the downside is packed with significant support levels.

Here is how it looks on the tool:

USDJPY technical confluence analysis

Confluence Detector

The Confluence Detector finds  interesting 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. This means 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