USD/JPY has formed a head and shoulder pattern on the 1H and 4H charts, indicating that a top has been made and price will carry on its retrace from the last week of bullish gains. Traders should wait for a breakout of the support zone as price tested for support 02/09 12:00 (GMT+1)
We have a supply zone above price and a demand zone from 102.37 -101.72. Expect some choppy movements through the demand zone and possible break through to the 1D support level 99.67.
USD - Chances for September rate hike are getting lower as Fridays NFP was below expectations. Last weeks USD data was a wash with negative and flat data and I don't think this week will be any different.
Thursday - JPY GDP (Q2) data and various others, Positive data and strong yen (currently) will play a huge factor in a bearish move.
Comment:
We are on, Weak USD ISM data was the ignition