USD/JPY:
4hr TF.
The lower (buffer) trendline along with the weak-looking demand area at 101.207 – 101.754, and the S/R weekly flip level at 101.328 have all been consumed on this timeframe, however do keep in mind the daily timeframe is yet to show a positive close lower as the candle has not closed. Price is currently reacting off of the underside of the daily demand area just mentioned above; this has yet to be proved as a supply/resistance area. In Monday’s analysis it was reported if a break below the daily demand area happens, to be prepared for buyers to come in at around 100.927/101.000 area, which may help facilitate a possible fakeout in the future.
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[li]Areas to watch for buy orders: 100.927/101.000.
[/li][li]Areas to watch for sell orders: 101.451 (underside of the trendline).
[/li][li]Most likely scenario: Price will likely retrace north from where is it currently trading, a likely area to be used could well be the underside of the weekly trendline that was just broken which may act as temporary resistance. A drop may then be seen to the fakeout area below at 100.927/101.000. The coming few days will give us more information regarding whether the daily demand area at 101.207 – 101.754 is truly consumed and is not just performing a fakeout.
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