Today, the pair is again trading outside the monthly control zone of August, which makes it possible to use any decline to find favorable prices for purchasing the instrument. The defining resistance is WCZ 1/2 106.72-106.63. While the pair is trading below this zone, the upward movement remains corrective, however, sales will not be profitable, since the probability of moving away from the monthly control zone is 30%.
Work in the medium-term flat implies purchases from the lower boundary. The probability of a return to the level of 106.45 is 90%, which makes any transactions profitable in the direction of weakening the Japanese yen.
An alternative model will be developed if the closure of today’s US session occurs above the level of 106.72. This will make it possible for you to hold purchases and open new positions with the aim of testing the weekly control zone 107.81-107.62.
Daily CZ – daily control zone. The area formed by important data from the futures market, which change several times a year.
Weekly CZ – weekly control zone. The zone formed by important marks of the futures market, which change several times a year.
Monthly CZ – monthly control zone. The zone, which is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Control zones USDJPY 08/19/19