Between June and prior to the NFP release, the market seems to be in a consolidation stage with no clear dominance of buyers or sellers. However, the chart point towards a slight uptrend during this stage, indicating a stronger presence of buyers. Also, shortly before the NFP release, there is clear market consolidation within the resistance levels, indicating a strong presence of bulls. Following the aftermath of the price collapse triggered by the NFP release, the market established an upward momentum shortly, lending support that the bulls are still present.
With the ongoing trade tensions, the failure of the BOJ to hit its targeted inflation rate of 2%, and high expectations of a Fed rate cut, there is strong pressure for BOJ to pursue further easing policies. As such, i foresee an upward momentum and subsequent breakout in prices.
Trade: Set buy limit at 108.488, T/P at 108.619 and S/L at 108.347 in case false breakout occurs.