Sellers strengthened their grip Monday, plummeting to lows of 101.18, levels not seen since November 2016. Risk-off flows continued to dominate amid heightened concerns over the coronavirus outbreak and its impact on the global economy, consequently increasing demand for safe-haven assets, such as the Japanese yen. H4 price ran through a number of big figures, though currently holds 102, bolstered by earlier support around 101.18. Resistance at 102.53, a previous Quasimodo support level, currently caps upside, with the relative strength index (RSI) seen dipping its toes deep in oversold terrain (green).
Further afield, weekly movement is grasping Quasimodo support at 102.55, positioned north of support at 100.61. To the upside resistance now stands at 105.35, a previous Quasimodo support. A similar picture is visible on the daily timeframe, rebounding from weekly Quasimodo support at 102.55, yet resistance on this scale falls in around 105.05, another previous Quasimodo support.
In order to confirm a recovery off weekly support, traders likely have their crosshairs fixed on a H4 close north of 103. This possibly frees the runway north at least until we reach 104, with a break drawing in 105 and then daily resistance 105.05.
A H4 close above 103 will likely be sufficient for some traders to enter long; others may require a retest at 103 to occur before pulling the trigger.
Disclaimer: The information contained in this material is intended for general advice only.