Friday Night, Game On!

February 12, 2016

Friday Night, Game On!:
With all major markets sitting at key levels, it’s game day. Oil, US stocks, The Yen etc etc. Every chart I flick through on my Vantage FX MT4 platform seems to be sitting at some sort of major make or break, higher time-frame level.

As we spoke about yesterday on the @VantageFX Twitter account, USD/JPY approached and then broke through major weekly trend line support.


There are obviously a few different ways to draw this trend line which makes it a little iffy, but the fact that the lower time frame price action respected the level on both sides of it, tells us that either way it carries some significance.

Getting back to the present and we can see that price has gone through weekly support, but is clinging on for dear life.

USD/JPY Weekly:
Forex chart, USD/JPY Weekly, 160212
Click on chart to see a larger view.

USD/JPY Hourly:
Forex chart, USD/JPY Hourly, 160212
Click on chart to see a larger view.

Zoom into the hourly and we see it’s showing a break-out and re-test… but this isn’t a break-out and re-test. It’s the Asian session, there is no momentum following the break-out and I’m expecting some consolidation until the US session tonight. Don’t get sucked in!

So… Is this the day that all hell breaks loose in Indices markets? We’ve talked about expecting the S&P 500 to lead other markets and we’re now at a major tipping point.

S&P 500 Daily:
Indices chart, SP500 Daily, 160212
Click on chart to see a larger view.

Another new low on stocks last night, but another fake-out with the daily candle closing with a huge wick once again bouncing out of support.

S&P 500 Hourly:
Indices chart, SP500 Hourly, 160212
Click on chart to see a larger view.

As for the trend line when you zoom into the hourly chart, once again I’m taking it with a grain of salt. Remember that it’s a weekly trend line starting as far back as 2009, so once you zoom in through the different lower time frames, the candles are never going to line up exactly. I’ve included it because it’s there, and that’s all.

While the trend line isn’t really tradable, there is no denying test after test of the horizontal support zone that is weakening each time.

Friday night and it’s game on.

———

On the Calendar Friday:
AUD RBA Gov Stevens Speaks
CNY Bank Holiday

EUR German Prelim GDP q/q

USD Core Retail Sales m/m
USD Retail Sales m/m
USD Prelim UoM Consumer Sentiment

Do you see opportunity trading the S&P 500? Take advantage on your $50,000 Forex demo account.

Dane Williams – @VantageFX

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