Technical picture on the USD/JPY
Improved sentiment along with a robust USD seen across the board, provided a floor of support for the USD/JPY on Tuesday. H4 mid-level resistance at 112.50 was taken out mid-way through London’s morning session, clearing the path north for US traders to approach the 113 handle.
As of current movement, the pair is seen crossing swords with 113. Traders who follow multiple timeframes may have also noticed a daily supply at 113.91-113.09 lurking just overhead, which houses a H4 Quasimodo resistance level brought in from early January 2018 at 113.30 (not seen on the screen).
Another consideration worthy of attention in this market is weekly price. Note the pair recently crossed above a 2018 yearly opening level at 112.65. Should buyers remain defensive, further upside to weekly supply at 115.50-113.85 could eventually come to fruition.
Areas of consideration:
Although there’s a possibility the market could stage a selloff from 113 today, the team favours higher prices for shorts: the H4 Quasimodo resistance mentioned above at 113.30. With the backing of the current daily supply and also the liquidity taken from stop-loss orders above 113, the odds of 113.30 producing a move lower far outweigh that of 113, in our opinion.
Electing to wait and see how H4 price action responds from 113.30 before pulling the trigger, however, is a smart move, since let’s not forget weekly price indicates further buying may be in store.
Today’s data points: US building permits and Housing starts; Fed Chair Powell testifies.
As of current movement, the pair is seen crossing swords with 113. Traders who follow multiple timeframes may have also noticed a daily supply at 113.91-113.09 lurking just overhead, which houses a H4 Quasimodo resistance level brought in from early January 2018 at 113.30 (not seen on the screen).
Another consideration worthy of attention in this market is weekly price. Note the pair recently crossed above a 2018 yearly opening level at 112.65. Should buyers remain defensive, further upside to weekly supply at 115.50-113.85 could eventually come to fruition.
Areas of consideration:
Although there’s a possibility the market could stage a selloff from 113 today, the team favours higher prices for shorts: the H4 Quasimodo resistance mentioned above at 113.30. With the backing of the current daily supply and also the liquidity taken from stop-loss orders above 113, the odds of 113.30 producing a move lower far outweigh that of 113, in our opinion.
Electing to wait and see how H4 price action responds from 113.30 before pulling the trigger, however, is a smart move, since let’s not forget weekly price indicates further buying may be in store.
Today’s data points: US building permits and Housing starts; Fed Chair Powell testifies.
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