ZuluTrade Blog

USDJPY is facing a major resistance

Market View | Wednesday, March 6, 2019 3:36 PM GMT

Earlier in the day, US ADP Employment Change declined to 183K, while the previous one was 300K. Further to this, US Trade Balance was verified to $-59.8B, unrevised from the expectations for $-57.9B. Today’s agenda includes also major events such as Fed’s Williams speech and Fed’s Beige Book.

Reviewing the daily technical aspect, USDJPY hit the 72.8% Fibonacci retracement level and it has been consolidating for 3 days between the Daily (S1) and Daily (R1). Going to more technicals, RSI is testing the overbought zone and Stochastics is already overbought. Lastly, CCI escaped from the highly overbought zone (>220 level), while it is currently breaking the major 100 level to the downside.


Overall, the setup indicates a potential reversal towards the Daily (S3) offering a selling opportunity to the market.

On the other hand, if price breaks out above the 72.8% Fibonacci resistance level, then the pair may continue its bullish momentum towards the Daily (R3).

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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