Yen Bouncing Off the Resistance

Dynamic trend: Turned up
Background: W1 – weak; D1 – strong
Phase: Markup
Support: 111.80; 111.00
Resistance: 113.60

USDJPY Markup 28-11-2016

USDJPY Hourly 28-11-2016



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).


You can search for «No Demand» and «No Supply» signals on the lower TF.



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