Yen Bouncing Off The Resistance
Leonardo Barata | Nov 29, 2016 01:48AM ET
Dynamic trend: Turned up
Background: W1 – weak; D1 – strong
Phase: Markup
Support: 111.80; 111.00
Resistance: 113.60
USD/JPY Hourly 28-11-2016
Analysis
Point 1: There was a breakout of the resistance level with a wide range and a high volume bar. The following up-bar confirmed demand. Moreover, on a smaller TF we can observe a successful test after this breakout, which confirms the strength.
Point 2: we can see a “Potential stopping volume” with an average range and a high volume. Because the subsequent bar was a down-bar, this maneuver is not confirmed, however, we should take into account that the strength comes on down-bars, and in the case of a successful test level around 111.80 and 111.00, we will be going long.
Suggested Strategies
Strategy 1: Consider to go long if:
- Price pulls back to the support level 111.80 or 111.00 and;
- “No Supply” appears (down-bar with a narrow range and a low volume) and;
- The price reverses.
Strategy 2: Consider buying if:
- Price breaks out the resistance level 111.60 and;
- “No Supply” appears.
Strategy 3: Consider selling if:
- Price breaks down the support level 111.00;
- “No Demand” appears (up bar with a narrow range and a low volume).
Tips
You can search for «No Demand» and «No Supply» signals on the lower TF.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.