Two corridors for Yen | 14 December 2016

14 December 2016, USD/JPY

Daily chart: ADX is still strong but, in general, the pair is shifting towards downward reversal in direction of 112.86 (middle Bollinger band). However, consider possible touch in 116.65 when trading.

Two corridors for Yen

Н4: There is a horizontal flat within Bollinger envelopes (114.26-115.95). Weak ADX indicates that market is unable to go beyond these borders.

Two corridors for Yen

Н1: there is even more localized corridor 115.06-115.39. It's highly unlikely that these 30 pips would be able to hold against news release. However, indicators speak in favor of such scenario.

Two corridors for Yen

Expectations: we expect flat price fluctuations either inside big or little corridor. The first corridor is 115.06-115.39. The second corridor is 114.26-115.95.

Solutions: trades with the help of trailing limits and breakdown orders within the mentioned ranges.

Aleksey Panasenko
FreshForex Analyst
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