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07.08.2019 07:12 AM
Control zones for USD/JPY pair on 08/07/19

Today's trading plan should take into account the fact that the pair is trading below a monthly shortfall. This completely cancels sales from current levels since the probability of a return to the control zone has increased to 90%. Purchases are best viewed below current levels. The pattern of "false breakdown" on the nearest extremes is suitable for this.

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The first goal of growth can be considered at a weekly control zone at 107.32-107.16. Reaching this area will allow you to get the necessary risk-to-profit ratio for purchases from current levels.

An alternative model will be developed if the pair continues to fall to a weekly low. At this minimum, there is a significant weekly shortfall of 105.47-105.32, a test of which can lead to a sharp increase in demand. The basis for trading is going beyond the monthly short-circuit, so any models in the direction of weakening the Japanese yen will be advantageous at a distance.

An alternative model will be developed if the pair continues to fall to a weekly low. At this minimum, there is a significant weekly control zone of 105.47-105.32 and a test of which can lead to a sharp increase in demand.

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Daily CZ - daily control zone. The area formed by important data from the futures market, which changes several times a year.

Weekly CZ - weekly control zone. The area formed by marks from the important futures market, which changes several times a year.

Monthly CZ - monthly control zone. The area is a reflection of the average volatility over the past year.

Samanta Kruder,
Analytical expert of InstaForex
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