The USD/JPY is Consolidating and Looking for Direction
As the day unfolds we are seeing some opportunities emerging for tomorrow. We will focus on binary options on the USD/JPY pair as the Greenback has entered into a range between 119.40 and 119.80. We have projected on our chart some key trend line which will be determinant of the next move in this pair.
In today's trading the USD/JPY went higher in late Asian trading to test 119.80. The attempt failed as sellers emerged, but the pressure remains focused on the upside despite risks related to the outlook for the non-farm payrolls number which can be lower this Friday due to bad weather in the U.S.
A recent Reuters poll has suggested that the USD/JPY will be trading at 120 in a months time, 123 in six months and 126 in 12 months. Yet that doesn't help us much right now when we are aiming to identify where will the USD/JPY go in the next 24 hours.
In our views it largely depends on the technical side of the matter. The charts are pointing no direction so far, this is why we will be making projections and base our decision on certain thresholds being overcome by the pair. If the USD/JPY trades above 119.70 and closes above we could be in for a rally on Thursday.
On the other side of the pond - USD/JPY bears will triumph if they manage to drive the pair to close on an hourly basis below 119.40. This will be the alternative scenario for our forecast as we go along with the bullish view for now and will enter a trade if the price closes on an hourly basis above 119.80.