USDJPY Possible Trade Opportunities. RetrenchmentOrContinuation?
A strong U.S equities market and risk-friendly trading environment have helped push and breakout USD/JPY above a descending trend line on the 1-hour time frame. The pair were consolidated for a while London entered but then somehow the global positive risk sentiment news concern to coronavirus saying "China finding an effective drug to treat people with new coronavirus" pump the pair little higher but I guess there was some more hidden reason for price acting that manner earlier. Before the U.S. ADP report only a few hours away USD/JPY’s may have some possible retracement opportunity if today’s U.S. ADP report prints lower than market already weak expectations. We could see USD/JPY give up some of its gains and revisit 109.063 and this case should be considered to buy the rumors sell the news case. As we can see, the fib 38.2%
level lines up with the previous resistance level 109.063 which is a good take profit level for bearish bias traders if the ADP forecast ends up being the actual or even worst. If today’s ADP release prints better than expected, then we could see USD/JPY trade higher without a significant retracement and bullish momentum may not fade away which will lead to some more new fresh buyers in this major pair!
level lines up with the previous resistance level 109.063 which is a good take profit level for bearish bias traders if the ADP forecast ends up being the actual or even worst. If today’s ADP release prints better than expected, then we could see USD/JPY trade higher without a significant retracement and bullish momentum may not fade away which will lead to some more new fresh buyers in this major pair!
Comment:
US trade balance for December $-48.9 billion versus $-48.2 billion estimate
That's a super-strong reading on jobs from ADP and has lifted USD/JPY