Trend line continuation. USDJPY may have a spike and retest before a rejection from the major psychological level of 114.5 before going back down to trend line before retesting again.Breakout will likely to occur.
Scenario 2 (Blue Arrows)> Neutral NFP report
REMEMBER!! MARKET PLAYERS AND TRADERS ALREADY ANTICIPATED A GOOD REPORT. THEREFORE a not so "Neutral" report may be responded with a dovish spike before potentially forming a Head & Shoulder. Neckline is perfectly formed at 50.0 fib retracement.
Scenario 3 (Red Arrows)> Bad NFP report
This will be a perfect disasters for bears. Since MARKET PLAYERS AND TRADERS ALREADY ANTICIPATED A GOOD REPORT, A Bad report will likely tank this pair to the 61.8 Fib Support at 113.3 or even lower. A support turned resistance will either form at the 50.0 fib or 61.8 fib.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.