USD/JPY Hangs Onto A Thread After The Flash Crash

USD/JPY suffered a major flash crash after Apple issued an earnings warning and as liquidity remained low. While some currency pairs recovered, dollar/yen remains on the low ground. What levels should we watch out for?

The Technical Confluences Indicator shows that the pair has significant support at 106.72 where we see the previous one-hour low, the Bollinger Band 15-minute Lower, and the Pivot Point one-month Support 2.

Below this level, we see no cushion at least until 105.60.

Looking up, there is some resistance at 107.50 which is the meeting point of the Pivot Point one-week Support 3 and the Bolinger Band 15-minute Upper.

Another cap awaits at 107.90 which is the convergence of the BB 4h-Lower, and the previous 4h high.

The most substantial cap is at 108.17 where we see the confluence of the PP one-day S2, the PP one-month S1, and the PP one-month Support 3.

Here is how it looks on the tool:

USD JPY Technical Confluence January 3 2019

Confluence Detector

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.

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