USDJPY looking for a direction, more probable new short

USDJPY H1 Our expectations:

The price is in a tight consolidation of 30 pips between 108.00 and 108.30. It is very likely that the breakout of this formed zone to indicate the next direction in the pair.

The fundamentals are rather in favor of the JPY. Last week's stock market positivism has cooled down and this is a plus for a safe heaven tool like the Japanese yen. Recent Powell's comments have suggested future caution in raising interest rates in the United States, which turned out to be negative for the dollar. On Wednesday, a statement by the Fed chairman and minutes of the last Federal Reserve meeting is expected, which is likely to begin trading today - a weak dollar.

It is good to wait for a convincing breakthrough and a closed bar below 108 or over 108.30 to be sure of the next impulse.

A more aggressive approach might be waiting for a false breakthrough and positioning in the opposite direction - that is, a shadow over 108.30 and closing a bar below for a short or shadow below 108 and closing a bar above this level for a long position.

SL beyond the consolidation zone after a breakout or below the shadow of the bar forming a fake breakout.

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