USD/JPY has been on the back foot after the Fed decision and fears that the US and China may be unable to reach a comprehensive deal. And now, the Non-Farm Payrolls are set to rock markets. How is the currency pair positioned?
The Technical Confluences Indicator is showing that USD/JPY has critical support at 107.94, which is the convergence of the previous 4h-Low, the Fibonacci 161.8% one-week, the Bollinger Band 15min-Lower, and the BB 4h-Lower.
If it breaks lower, weak support awaits at 107.61, which is where the Simple Moving Average 100-one-day, the SMA 50-oned-ay, and the Pivot Point one-day Support 1 meet.
Looking up, robust resistance awaits at 108.28, which is the confluence of the previous weekly low and the BB 1h-Upper.
Further above, we find 108.66, where we find a cluster of lines including the SMA 10-1d, the SMA 200-1h, the BB 4h-Middle, and the Fibonacci 23.6% one-week.
Here is how it looks on the tool:
The Confluence Detector finds exciting 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. These weightings mean 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.