Hey Everyone!
I believe USDJPY can have both scenarios for the following reasons:
SELL setup:
- USDJPY has been very bullish recently and needs a strong rejection.
- Even with NFP news outcome being positive the USD is currently falling slightly.
- There is a good bearish channel and stoploss is covering our 100-200 moving averages.
Buy setup:
- After the likely rejection I believe a strong pullback to the psychological level 137.00 could trigger huge bullish pressure.
- That's where the 200 moving average is sitting on the daily and the 4h is nearby which usually trigger a reaction in the market.
- Overall market direction is also very bullish in favour for USD.
My personal opinion: I would not sell, I would wait for that pullback and stay patient, but for those who love a little risk, could be a good trade-down.
If moving averages do manage to break to the upside, this trade becomes invalid.
I believe USDJPY can have both scenarios for the following reasons:
SELL setup:
- USDJPY has been very bullish recently and needs a strong rejection.
- Even with NFP news outcome being positive the USD is currently falling slightly.
- There is a good bearish channel and stoploss is covering our 100-200 moving averages.
Buy setup:
- After the likely rejection I believe a strong pullback to the psychological level 137.00 could trigger huge bullish pressure.
- That's where the 200 moving average is sitting on the daily and the 4h is nearby which usually trigger a reaction in the market.
- Overall market direction is also very bullish in favour for USD.
My personal opinion: I would not sell, I would wait for that pullback and stay patient, but for those who love a little risk, could be a good trade-down.
If moving averages do manage to break to the upside, this trade becomes invalid.