Technical Analytics Report

USDJPY:

Monthly timeframe: 

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves) 

Since kicking off 2017, USD/JPY has been carving out a descending triangle pattern between 118.66/104.62.

December, currently down by 0.7 percent, is seen attempting to pursue terrain beneath 104.62.

104.62 ceding ground throws light on support from 101.70, with a break uncovering trendline support (76.15) and the descending triangle’s take-profit level at 91.04 (red). 

Daily timeframe: 

Brought forward from previous analysis – 

Support at 103.08 emerged on December 17 and, as you can see, has so far held form, potentially setting the technical stage for additional gains to trendline resistance (111.68). However, light falls on demand at 100.68/101.85 if sellers make a push through 103.08 support. 

RSI enthusiasts will also note upside momentum is bound for 57.00 resistance (capping upside since July).

H4 timeframe: 

 

Tuesday’s analysis revealed price establishing an ascending triangle pattern between 103.89/103.19. 

 

Latest developments, nevertheless, show price marginally surpassed the lower side of the aforesaid ascending triangle, suggesting daily support at 103.08 is perhaps next on tap. Climbing back into the triangle pattern, however, followed by a subsequent breakout above 103.89, shines light on resistance at 104.14, plotted alongside a 127.2% Fib projection at 104.17.

 

H1 timeframe:

 

103.50 support, as you can see, made an entrance in recent hours, shortly after taking out the 100-period simple moving average.

 

Buyers defending 103.50 and reclaiming the 100-period simple moving average indicates H4 price could make its way back into the ascending triangle. Dropping sub 103.50, and taking on Monday’s low at 103.40 implies we’re perhaps headed for demand at 103.05/103.14, largely due to the lack of demand seen between 103.40 and 103.19.  Also noteworthy is the RSI lingering ahead of oversold space. 

 

Observed levels:

 

Partly modified from previous analysis – 

 

Monthly price pursuing a bearish theme below descending triangle support at 104.62 places a question mark on daily support at 103.08. A daily close below the aforementioned level unlocks the possibility of monthly support surfacing around 101.70 (located within daily demand at 100.68/101.85).

 

Shorter-term price action is currently concentrated around 103.50 support on the H1. A break beneath the latter, and Monday’s low at 103.40, indicates a bearish scene towards H1 demand at 103.05/103.14. A move off 103.50, and subsequent break of the 100-period simple moving average, however, could have intraday buyers attempt to take control. 

 

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