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Control zones for USD/JPY on Mar 16, 2020
A local accumulation zone was formed on the USD/JPY pair. To resume growth, the formation of the “absorption” pattern is needed, after the test of the WCZ 105.94-105.69. It coincides with the range of the average weekly movement, increasing the probability of demand. Regarding the formation of the buy pattern, the said zone should be considered.
The main work for the current week is the range between the WCZ and the monthly high. Partial consolidations will happen if the specified zones are tested.
Otherwise, if the closing of today’s trading occurs below the weekly short-term limit, an alternative model will develop. It will open the way for a decline to the border of the monthly average move, located at 104.00. This model has a good potential, since the probability of pair returning to the average movement is 90%.
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 important marks of the futures market, which changes several times a year.
Monthly CZ – monthly control zone. The area, which is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company – www.instaforex.com
