Another day has passed for the USDJPY and a new candle of a small bearish candle has appeared. With this pair set to go bullish, traders wonder when this ranging trend will soon end. This pair is now ranging below 119.8 with 2 tests to the resistance before retracing down. The ascending triangle is still in play now and this pair may soon be testing this trendline before moving up to the 125 level. the ADX is however gaining momentum, which may indicate a non-stop move to the top without an retracement. With all 80 / 120 / 200 EMA pointing to the north, this scenario has more evidence and likelihood.
The H4 chart shows this ranging pair in greater detail. After an initial drop from 120.2, it has failed to show a decisive direction either to the north or to the south. The Fibonacci Expansion shows that it is likely the pair will move towards the 141.4 level of 119.2 before retracing to the 120 levle. The Stochastic Oscillator is inconclusive as it is neither in the oversold or overbought region. The EMA 20 / 50 is ranging above the EMA 200 but it is non-conclusive of a movement. the ADX is falling however, with no gain in trend strength, suggesting that the pair is still ranging. Sellers and buyers may want to enter at the range of between 119.8 and 119.2.The H1 chart shows several entry possibilities at 119.2 and 119.8 with EMA 20 / 50 trending above the EMA 200. with a strong support at 119.4 and the EMA, bulls will find it a good entry at that price level. The Trad MACD is also inconclusive and thus is not very useful as an indicator for now. the ADX is going weaker, suggesting that it is possible for a small reversal for intraday traders.
Good luck all, it’s one day before NFP. Protect your profits and trade safely. Always use stop losses!