CADJPY 4H Supply & Demand Zones
Updated
The chart shows supply and zones in 4H time frame. It is necessary to review 1D and 1W to assure the zones strength and compression
Note
** Do not open any position before FED cash rates and FOMC press conference** Be aware of market concentration on Recession Risks and sooner than expected
QE which implies that market will put much more weight on dovish statements
** So any "but" in Powell's speech will be regarded as dovish statement
Scenario 1 : downward break out with good consolidation = JPY Strength / USD
Weakness
- Dovish press conference focusing on Recession
- Terminal rates projections and dot plot
- OIL price
** You might miss the first chance due to the JPY dependency to US10Y so wait for
any possible pull-backs
Scenario 2 : upward break out with good consolidation = JPY Weakness / USD
Strength
- Hawkish press conference focusing on Inflation
- Terminal rates projections and dot plot
- Any drops in US02Y might make controlling inflation harder for FED
- FED doesn't want further drops in Real Yields
- Any news from higher demands for OIL including China easing the Zero-Covid
strategy lockdowns
Trade closed: target reached
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