Control zones for USD/JPY pair on 07/23/19

Testing the 1/2 WCZ of 108.12-108.04 should give an answer about what will be the next priority. If today's trading closes below the zone, the downward momentum will continue and in order to enter the sale will require the formation of a pattern of "false breakdown" of yesterday's maximum. The first goal of the decline will be at least last week, which coincides with the weekly control zone.

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It is important to understand that the dynamics can change today. If yesterday's high remains resistance, the pair will return to the flat range.

To break the downward impulse, it will be necessary to close today's American session above the level of 108.12. This will open the way for further growth and allow you to search for favorable prices for a purchase tomorrow. For today, purchases on the breakdown zone are not profitable since there is still a chance for a false breakdown.

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Daily CZ - daily control zone. The area formed by important data from the futures market, which changes several times a year.

Weekly CZ - weekly control zone. The area formed by marks from the important futures market, which changes several times a year.

Monthly CZ - monthly control zone. The area is a reflection of the average volatility over the past year.

The material has been provided by InstaForex Company - www.instaforex.com