Interesting price action on the USD/JPY this morning...
The Japanese yen withered against its US counterpart on Wednesday, despite risk-averse conditions. Higher-than-expected PPI figures and Fed comments seemingly boosted the greenback, bringing the USD/JPY to highs of 112.17, levels not seen since early January.
Thanks to yesterday’s bout of buying, weekly price climbed above weekly trend line resistance taken from the high 123.57 and is now poised to connect with the 2018 yearly opening level at 112.65. In terms of daily movement, we’re seeing the pair shake hands with resistance drawn from 112.11. A rejection off this number has support at 111.16 to target, whereas a continuation to the upside will likely eye supply at 113.91-113.09.
The technical picture over on the H4 timeframe shows the unit recently breaching the 112 handle and tagging the underside of supply at 112.38-112.18. As we write, the bulls are emphasizing strength around 112 which could lead to further tests of the aforementioned supply today.
Areas of consideration:
According to H4 and daily structure, the pair is likely to turn lower today. Not only do we have daily resistance at 112.11, we also see H4 supply mentioned above at 112.38-112.18 and the 112 handle in play. The only grumble here, though, is weekly structure. Weekly bulls could pull this market beyond the said areas on H4 and daily to test the 2018 yearly opening level mentioned above at 112.65.
Should traders feel the H4 and daily areas are worthy of shorts still, waiting and seeing if H4 price can print a full or near-full-bodied bearish candle from this region is advised before pulling the trigger. This will not guarantee a winning trade, but it will show seller intent.
Today’s data points: US inflation figures and unemployment claims.
Thanks to yesterday’s bout of buying, weekly price climbed above weekly trend line resistance taken from the high 123.57 and is now poised to connect with the 2018 yearly opening level at 112.65. In terms of daily movement, we’re seeing the pair shake hands with resistance drawn from 112.11. A rejection off this number has support at 111.16 to target, whereas a continuation to the upside will likely eye supply at 113.91-113.09.
The technical picture over on the H4 timeframe shows the unit recently breaching the 112 handle and tagging the underside of supply at 112.38-112.18. As we write, the bulls are emphasizing strength around 112 which could lead to further tests of the aforementioned supply today.
Areas of consideration:
According to H4 and daily structure, the pair is likely to turn lower today. Not only do we have daily resistance at 112.11, we also see H4 supply mentioned above at 112.38-112.18 and the 112 handle in play. The only grumble here, though, is weekly structure. Weekly bulls could pull this market beyond the said areas on H4 and daily to test the 2018 yearly opening level mentioned above at 112.65.
Should traders feel the H4 and daily areas are worthy of shorts still, waiting and seeing if H4 price can print a full or near-full-bodied bearish candle from this region is advised before pulling the trigger. This will not guarantee a winning trade, but it will show seller intent.
Today’s data points: US inflation figures and unemployment claims.
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