USDJPY followed the direction in accordance to our analysis published on 31st July, focusing on news events from last week like Non farm payrolls, as most retail traders were looking forward to the release of highly anticipated figures that provides insight into the instignated stimulus to the market. We knew that NFP would have a huge bullish impact on dollar while creating bearish atmosphere in opposite side of currency pairs and some major commodities like gold. We expected that the news would have a high impact on dollar in terms of gaining its strength and breaking above 111.0 price action but took a pause at 110.20 as friday closing. From current market scenario, US dollar versus Japanese Yen are within the ichimoku cloud in daily time frame while trading above the intraday exponential moving averages 8,13,21 while struggling against the exponential moving average 50 in terms of further breaking out. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

USDJPY is trading in between our weekly and daily pivots i.e 110.20-110.13 with relative strength index retrieving from level 70. There are high chances of the market still being in wave 3 rather than expecting an end to 5 wave bullish structure in four hourly time frame. But on the daily chart we have some mixed sentiments because this can be just the starting of a bullish wave structure and we might experience some short time bearish pull back before moving any higher. The aforementioned dovish effect in dollar can also be generated due to bullish reversal and correction of gold. The ichimoku cloud in daily should be our concern in terms of maintaining patience and letting our traders run according to our previously published analysis until we have our stop loss hit at 109.34. Another reason for letting the trades run is for the market trading above our exponential moving averages 8,13,21,50 and 200 in four hourly chart, which can become a point of bullish continuation if USDJPY came down for a short term correction. 

USDJPY

Aug 09 2021