This data is collected by the U.S. Department of Labor and published in a weekly report. The indicator allows estimating the domestic demand dynamics, as well as the consumer lending capacity to stimulate the U.S. economy. The significant indicator growth improves inflation expectations and reduces purchasing power. Today the unemployment claims number is expected to increase from 304,000 to 310,000. There is a high probability that the indicator release may cause increased U.S. dollar volatility regarding stable Asian currencies; that is exactly what we are going to use.
Here we consider the USD/JPY behavior on the daily chart. The price is located within the weeklong consolidation area limited by a triangle. This encourages us to focus more on the oscillators’ analysis which caters for leading signals of the sideways range. At the moment there is a weak bullish trend for RSI-Bars (13) with the temporary correction onset. There is a possibility of trend destruction at the oscillator support breach 34,049, which coincides with the price level intersection at 100,783. At the same time we fix the lower triangle border break-out and the movement beyond the DonchianChannel. It is recommended to place a pending sell order below this mark.
It is reasonable to start buying only if the rate rises higher than 102,345. This fractal resistance is confirmed by ParabolicSAR historical values and DonchianChannel 13-day resistance. Moreover, there is a high probability of this key level breach results in leaving the triangle and entering into the green zone. After that the stop loss orders on short positions will be executed, which results in panic buying.
After two pending orders opening, we expect the first of them to be executed and the opposite position to be closed: let the market chaos decide the behavior. After position opening, Trailing Stop is to be moved after the ParabolicSAR values, or near the next fractal peak (trough, in case of long position). Thus, we are changing the probable profit/loss ratio to the breakeven point.
|Levels||RES 3||RES 2||RES 1||SUP 1||SUP 2||SUP 3|
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