USDJPY Reaching Important Resistance Before NFP
Tomorrow at 1:30pm BST the NFP and unemployment numbers are being released, which could provide the breakout of critical levels in USD pairs, such as in USD/Yen.
In the hourly, USDJPY is on a clear up trend, within a channel, and approaching the important resistance at 104.32. The market has been rising on high volumes, and the current supply is normal in overhead zones such as this one. Depending on the NFP numbers, the breakout could go either way, and both are trade-able.
- In case the up trendline breaks, you should go to a lower timeframe such as M15 to trade it, as the movement might not be so prolonged without further rallies and tests.
- In case there is a breakout to the upside, it should be traded on H4 since it’s a trade to be held for the mid-term.
On the 4 hours timeframe, we can see the prices are actually on a selling congestion zone, which reinforces the plan idea that there should be a breakout to trade it.