Several notable patterns seen on USD/JPY, traders.
USD/JPY:
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 busy carving out a descending triangle pattern between 118.66/104.62. The month of March concluded by way of a long-legged doji candlestick pattern, ranging between 111.71/101.18, with extremes piercing the outer limits of the aforementioned descending triangle formation.
Areas outside of the noted pattern can be seen at supply from 126.10/122.66 and a demand coming in at 96.41/100.81.
Daily timeframe:
Brought forward from previous analysis -
Leaving demand from 105.70/106.66 unopposed, USD/JPY seems to be in the process of forming a double-bottom support from 106.87 (black line). Although the 200-day simple moving average (SMA), currently circulating around 108.30, could hamper upside, pattern traders will still be watching/hoping for a break above the 109.38 April 6 high (red arrow) to confirm the double-bottom pattern. This potentially preps the ground for moves to 111.30ish based on the double-bottom’s take-profit target (usually measured from the lowest trough to the peak and then adding this value to the breakout point).
H4 timeframe:
Partially altered from previous analysis -
Demand at 106.75/107.22 remains a feature on the H4 timeframe, capping downside since the beginning of the month and sited just ahead of daily demand underlined above at 105.70/106.66.
Interestingly, since the beginning of last week the candles have been compressing within what appears to be a bearish pennant pattern between 106.92/108.08. Monday, as you can see, spent the session crawling along the lower boundary of this pattern. A decisive move south will likely overwhelm buyers from H4 demand and potentially make a run for demand at 105.75/105.17.
H1 timeframe:
Price action on the H1 timeframe is seen rangebound between supply at 108.16/107.99 (holds 108 within) and demand coming in at 106.99/107.16 (holds 107 within).
Heading into Europe Monday found the H1 candles shaping an intraday descending triangle between 107.94/107.59 within the walls of the current range. The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns.
A breakout of the descending triangle, one that tackles 107.50 to the downside, could trigger a wave of selling to the lower edge of the said consolidation.
Structures of Interest:
Long-term direction is difficult right now. Monthly price could effectively pop either way, while daily price, although showing signs of a potential double-bottom pattern at 106.87, may be hindered by the 200-day SMA at 108.30.
A decisive H4 close beneath the current bearish pennant pattern suggests we may be heading lower, though most traders will want to see H4 demand at 106.75/107.22 cleared before taking action. A H1 close out of the descending triangle formation could act as a forerunner to a breakout of the H4 bearish pennant formation. A H1 close sub 107.50, therefore, may be interesting for sellers.
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 busy carving out a descending triangle pattern between 118.66/104.62. The month of March concluded by way of a long-legged doji candlestick pattern, ranging between 111.71/101.18, with extremes piercing the outer limits of the aforementioned descending triangle formation.
Areas outside of the noted pattern can be seen at supply from 126.10/122.66 and a demand coming in at 96.41/100.81.
Daily timeframe:
Brought forward from previous analysis -
Leaving demand from 105.70/106.66 unopposed, USD/JPY seems to be in the process of forming a double-bottom support from 106.87 (black line). Although the 200-day simple moving average (SMA), currently circulating around 108.30, could hamper upside, pattern traders will still be watching/hoping for a break above the 109.38 April 6 high (red arrow) to confirm the double-bottom pattern. This potentially preps the ground for moves to 111.30ish based on the double-bottom’s take-profit target (usually measured from the lowest trough to the peak and then adding this value to the breakout point).
H4 timeframe:
Partially altered from previous analysis -
Demand at 106.75/107.22 remains a feature on the H4 timeframe, capping downside since the beginning of the month and sited just ahead of daily demand underlined above at 105.70/106.66.
Interestingly, since the beginning of last week the candles have been compressing within what appears to be a bearish pennant pattern between 106.92/108.08. Monday, as you can see, spent the session crawling along the lower boundary of this pattern. A decisive move south will likely overwhelm buyers from H4 demand and potentially make a run for demand at 105.75/105.17.
H1 timeframe:
Price action on the H1 timeframe is seen rangebound between supply at 108.16/107.99 (holds 108 within) and demand coming in at 106.99/107.16 (holds 107 within).
Heading into Europe Monday found the H1 candles shaping an intraday descending triangle between 107.94/107.59 within the walls of the current range. The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns.
A breakout of the descending triangle, one that tackles 107.50 to the downside, could trigger a wave of selling to the lower edge of the said consolidation.
Structures of Interest:
Long-term direction is difficult right now. Monthly price could effectively pop either way, while daily price, although showing signs of a potential double-bottom pattern at 106.87, may be hindered by the 200-day SMA at 108.30.
A decisive H4 close beneath the current bearish pennant pattern suggests we may be heading lower, though most traders will want to see H4 demand at 106.75/107.22 cleared before taking action. A H1 close out of the descending triangle formation could act as a forerunner to a breakout of the H4 bearish pennant formation. A H1 close sub 107.50, therefore, may be interesting for sellers.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.