Amidst the fundamentals hitting the markets, USD/JPY is seen to be locked in a “Range” on the short-term (see H4 chart). Given the stronger-than-expected jobs report in the US economy released last friday, price has been seen to retrace all of it gains due to possible fears of North-Korea testing its missiles. Possible ways to trade this range are:
1. Place entry sell position below the 112.2 support zone whilst looking to take profit at the 111.5 zone and further down at 111.2 zone.
2.Place entry buy position above the 113.4 resistance zone, looking to take profit t the 114.5 zone
3. Wait for price to find support at the 112.2 support zone and then look to buy at market price to take profit at the 113.4 resistance zone. Place stop below 112.2 zone.
Nevertheless, long-term outlook remains bullish as price is still trading above the 200 MVA on the Daily chart (see D1 chart).
Traders looking to buy or add to their positions might have to wait for a clear cut break-out of price beyond the 113.4 resitance zone of the current range.