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    USD/JPY: repeatedly touching support at key 118.50 level

       
    USD/JPY is range-bound within a broader sideways range.

    The smaller range roughly corresponds to the space between the monthly pivot at 120.18 and the S1 monthly pivot at 118.25.

    Price has repeatedly moved down and touched the 118.25-50 zone and found support, and this is a crucial level to watch. If there is a break below it then it could signal the start of a stronger decline. Unfortunately it is not clear where the level exactly is – although 118.50 has had more hits than 118.25.

    Tomorrow the monthly pivots will recalculate as its May 1 and the new levels will probably be – based on best estimates – at 117.99 for S1 and 119.41 for the monthly.

    This only leaves a narrow space of 50 points between the support level and S1 – not much to capitalise on. One possibility would be to wait for a pull-back, back into 118.50, after the initial break down, and then take a ultra-low risk trade from there down to 117.99, but we are no-where near this yet.

    As I have said before the bigger consolidation on the weekly chart could also be traded, but if so we would be looking for a break below 115.36 for confirmation and that is still far away.

    USDJPY30

       
    USD/JPY is range-bound within a broader sideways range.

    The smaller range roughly corresponds to the space between the monthly pivot at 120.18 and the S1 monthly pivot at 118.25.

    Price has repeatedly moved down and touched the 118.25-50 zone and found support, and this is a crucial level to watch. If there is a break below it then it could signal the start of a stronger decline. Unfortunately it is not clear where the level exactly is – although 118.50 has had more hits than 118.25.

    Tomorrow the monthly pivots will recalculate as its May 1 and the new levels will probably be – based on best estimates – at 117.99 for S1 and 119.41 for the monthly.

    This only leaves a narrow space of 50 points between the support level and S1 – not much to capitalise on. One possibility would be to wait for a pull-back, back into 118.50, after the initial break down, and then take a ultra-low risk trade from there down to 117.99, but we are no-where near this yet.

    As I have said before the bigger consolidation on the weekly chart could also be traded, but if so we would be looking for a break below 115.36 for confirmation and that is still far away.

    USDJPY30


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