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06/02/2015 USDJPY Slows down before NFP

06/02/2015 USDJPY Slows down before NFP

Screen Shot 2015-02-06 at 11.41.54 am

The D1 chart shows a slow but gradual consolidation to the previous low in November 2014. For the past week, it has been ranging inside the triangle with traders who specialise in ranging profiting. For everyone else, they are waiting for the breakout. The ADX shows a slow trend loss gradually with no signs of picking up in trend. the EMA 80/120/200 is catching up with the candles and the supports and this could show a  reversal; although, fundamentally, this is highly unlikely. For those who are looking to long, the NFP would give you a decisive picture on a good entry or staying at the sidelines

Screen Shot 2015-02-06 at 11.47.01 am

 

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The H4 chart confirms the sentiments that the USDJPY is still consolidating. with 3 fake breakouts and the formation of a new support at the 117 level, this pair continues to range within the descending triangle. The Stoic. Oscillator shows neitehr overbought nor oversold, which indicates that a entry may not be likely in the next few hours. However, with NFP looming, entries can still be made based on the results later. the EMA 20/50/200 have consolidated as well, with no signs of going either bullish nor bearish. Traders may want to take advantage of this time to earn from the range.

 

Screen Shot 2015-02-06 at 11.41.39 amThe H1 chart shows several levels of support and resistance. As it stands, this position is better off for a long than a short. However, it offers a poorer risk-reward ratio, and thus may not be suitable for all traders.

The MACD shows a cut in the red line at the 0 level, which shows that a probable short is possible as well. For sellers, this may be a good opportunity. But since it is at the bottom of the range and hitting the support soon, sellers will want to wait for a confirmation of the breakout before entering.

 

As before, use stop losses and good luck all for the NFP later!

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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