Pump and dump strategy is mostly common on stock market but it can be used on forex as well. Between worse GDP report from Japan and huge demand for dollars, USDJPY tested previous highs. Is it time to sell the pair? 


USDJPY has created base support around 113.60 level which was tested twice this week. After unimpressive data from japanese economy, USDJPY was still falling until it hit support zone around 113.60.

When european session kicked in, huge demand on US dollar showed up. Japanese GDP report might be the cause, but not the main cause of this rally. As we know, today’s afternoon will be pretty interesting because of ADP payrolls publication.

 

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Market forecasts of this indicator are pretty bearish. Consensus stabilized around 190K which is much lower level than previous 246K. If there won’t be a bullish surprise, dollar is probably going to plunge.

Bulls are keep fighting. If this resistance zone will be broken, nearest is at 114,70 level.

So, there we are – in supply zone based on previous highs and local lows, backed by 114.00 level. Are morning dollar gains fake and everything is just an old pump and dump scheme? Well, it might be. As always, we will know it for sure after it takes place. But one thing is sure – you should really keep an eye on USDJPY today.

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