USD/JPY - Key Level Reached, Breakout Or Sell Off?

30 juin 2020

Hello Traders!,
Hope everyones had a good start to the week with our trading, Today marks the last day for all Q2 forecasts and readings, meaning that there may be some abrupt price manipulation/speculation with certain pairs. This erratic movement in price is coming from institutions and banks loading and unloading positions from cutting losses and taking profits.
What Is The Market Telling Us?

• Current market sentiment shows us 58% of traders are long and 42% are short, meaning there is indecision between traders in the market
  
• Price has reversed since bouncing off level 106.2 and has reached the market's first resistance, waiting to see how market reacts to this
  
• Im anticipating some consolidation to occur before we see the market make it's directional impulse move to the upside or downside
  

When Should We Enter?

• PATIENCE IS KEY!!, As I said, price is most likely going to consolidate before anyhing convincing happens
  
• If we're looking to go long, we wait for a clear break and retest of our R1 level followed by bullish signals before going LONG
  
• If we're looking to go short, we wait for a clear break and retst of our support zone on a lower timeframe, followed by bearish singnals to go SHORT