Possible selling opportunity on the USD/JPY today...
USD/JPY:
Broad-based USD strength reinforced USD/JPY buying Tuesday, consequently recording its third consecutive daily gain and reaching highs of 113.84.
Despite recent upside pressure, the pair could be gearing up for a pullback according to the technical picture. Weekly supply at 115.50-113.85 elbowed its way into the spotlight yesterday, which, as is evident from the timeframe, has notable historical significance, holding price action lower on a number of occasions since May 2017. A closer read on the H4 timeframe highlights (yellow) a 161.8% Fibonacci ext. point at 113.78, the 114 handle and the underside of weekly supply at 113.85. In addition to this, traders might also want to note we have the RSI indicator displaying an overbought/divergence reading.
Areas of consideration:
The yellow H4 zone at 114/113.78 is of interest this morning for possible shorts. A H4 bearish candlestick configuration printed from within this zone, along with its surrounding confluence, highlights a high-probability selling opportunity, targeting H4 support priced in at 113.38 as the initial take-profit zone.
Today’s data points: US Prelim GDP q/q; Fed Chair Powell Speaks.
Broad-based USD strength reinforced USD/JPY buying Tuesday, consequently recording its third consecutive daily gain and reaching highs of 113.84.
Despite recent upside pressure, the pair could be gearing up for a pullback according to the technical picture. Weekly supply at 115.50-113.85 elbowed its way into the spotlight yesterday, which, as is evident from the timeframe, has notable historical significance, holding price action lower on a number of occasions since May 2017. A closer read on the H4 timeframe highlights (yellow) a 161.8% Fibonacci ext. point at 113.78, the 114 handle and the underside of weekly supply at 113.85. In addition to this, traders might also want to note we have the RSI indicator displaying an overbought/divergence reading.
Areas of consideration:
The yellow H4 zone at 114/113.78 is of interest this morning for possible shorts. A H4 bearish candlestick configuration printed from within this zone, along with its surrounding confluence, highlights a high-probability selling opportunity, targeting H4 support priced in at 113.38 as the initial take-profit zone.
Today’s data points: US Prelim GDP q/q; Fed Chair Powell Speaks.
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