Direct from the desk of Dane Williams.
Forex support and resistance is a dynamic beast and as a result, we have to be nimble in our analysis.
With our higher time frame zones such as what we have on our daily charts, we obviously don't have to be updating them a whole lot, but there are definite shifts in focus we have to pay attention to.
In my opinion, one such shift in focus needs to be made to the USD/JPY daily support zone we've been using.
Take a look at the daily chart below.
USD/JPY Daily:
With that Covid-19 driven whipsaw smack bang in the middle of our charts, we had been using some pretty old price action as a basis for our higher time frame support zone.
But now that price has printed that August low with an obvious ping up from the zone, it's time to shift our zone to match.
I'd always recommend using the most recent and therefore most relevant price action as a basis for your forex support and resistance zones, especially if that price action is so close to where you had a previously drawn zone.
Support and resistance is dynamic and as you can see here on USD/JPY, you have to be able to match that dynamism to be successful.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.