A continued accumulation potential
06 September 2016, USD/JPY
Daily chart: ADX is still in a very active trendarea, which can cause sudden upward movement of the price beyond the upper envelope (in the direction of 106.30). At the same time, of course, we can not ignore yesterday's purely bearish inside bar, which can arrange a rollback to the middle Bollinger band (101.69)
Н4: at this local frame, the pair is within a horizontal band 103.00 - 103.94. ADX got corrected downwards and is passive, so there is a high probability that the day will be spent inside this range.
Н1: a better shaped corridor - 103.14 - 103.65 (Bollinger band envelopes). This band has got noticeably narrower (as a rule, it anticipates an impulse), but so far ADX is also very weak. So, apparently, the pair is still accumulating potential.
Expectations: flat 103.14 - 103.65
Solutions: quiet waters. The day can be spent in the flat (where, in fact, there is no place for the price to turn around and especially for us to trade), but we should take into account a possible downward correction, so the main trading tactics can be waiting.
Aleksey PanasenkoAnalyst of «FreshForex» company
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