Breaking news:
All you need in Forex
story by: Oluranti Owolewa
USDJPY at key levels ahead of US jobs report
10/03/2017
USDJPY at key levels ahead of US jobs report

USDJPY at key levels ahead of US jobs report. As we approach US jobs report, we deemed it fit to bring to our notice the hurdles and the opportunity for USDJPY ahead of NFP.

10 March, AtoZForex -The U.S. dollar is seen to be holding on and extending its gains ahead of today’s non-farm payrolls report.  Expectations for job growth have increased to 200K from 175K with investors positioning for a strong number.  USDJPY closed above 114.93 levels on Thursday. The pair has easily taken out the 115 psychological key levels ahead of what will most likely be a strong labor market report. There’s no doubt that the Federal Reserve will be raising interest rates with Fed Fund futures pricing in 100% chance of rate hike.

Where a difference would be expected is in June as Fed Fund futures currently shows just a 50% chance of tightening at the next quarterly meeting but if even one part of the jobs reports fails to meet or beat expectations, traders could use it as justification to take profits on long dollar positions.  The total amount of payroll growth will be important but revisions to past reports, average hourly earnings, the unemployment rate and the labor participation rate are all significant. If average hourly earnings rise less than expected or the unemployment rate holds steady, any initial dollar rally on the back of greater job growth could fade quickly.  However, if every part of the release beats, USDJPY will probably race above 116  or even take a crack at 116.50

USDJPY at key levels ahead of US jobs report

USDJPY Technical Analysis

USDJPY at key levels ahead of US jobs report

USDJPY D (Chart) (Click to zoom)

We have been tracking USDJPY all week long as the levels to watch were clearly written in our USDJPY weekly trade ideas as Fed talks up March. Also, we ensured that we carried our readers along with an updated version of the first piece within the week USDJPY clears 114.50 barriers; What next?. Going forward into the US Jobs reports, nothing has changed as 115.60, is our next magnetic zone. How price reacts around this region is totally dependent on the US Jobs data. If an impressive job data comes out, we could easily have the 115.60 barriers taken out to target a crack of the 116.00 resistance zone. It is, however, imperative to go light into the NFP. Moreso, if you have been following up and trading according to our plans, your positions should be risks free by now. Stay glued as our new weekly trade setups that should come during the weekend will have you ready for the opportunities which await us next week.

What is your view on our USDJPY at key levels ahead of US jobs report? Please share your view in the comments section below.

 

(130)

Share via Twitter Share via Facebook Share via LinkedIn Share via Google Plus

Subscribe to AtoZ Forex exclusive updates!