In our FOMC Meeting live coverage on YouTube yesterday, we sent out a short signal on USD/JPY around 25 minutes after the decision and right before the press conference.
USD/JPY: trade ideas for the NFP day
Information is not investment advice
The US dollar had a strong week versus the Japanese yen. USD/JPY opened with a gap down on the W1, but is now trading above the highs of the previous week.
The United States will release Nonfarm Payrolls, Average Hourly Earnings and Unemployment Rate at 15:30 MT time. If the data are better than expected, USD/JPY may test the 110.00 mark. Notice though that on the way there the pair will have to overcome the 100- and 200-week MAs (109.60/70). These lines didn’t let the price higher in November and December and acted as resistance even before that.
The advance of USD/JPY this week has been quite rapid. Such a move makes the USD overbought in the short-term and creates potential for a correction to the downside. Support lies in the 109.30/20 area and at 108.95 (50-day MA) ahead of 108.60 (200-day MA).
Remember that volatility increases during news releases, so proper risk management is necessary.
The Federal Reserve decided to keep the current policy unchanged as widely expected, with no additional information about the timing of the tapering. In fact, in this meeting, the Fed mentioned tapering twice only.
Since the beginning of the earnings season, companies are posting record earnings, most sectors have so far beaten the estimates by a large margin…
As we discussed in the previous article devoted to gold, the price is growing extremely fast after a dovish FOMC’s statement…
What happened? Facebook presented an earnings report on July 28…
Ichimoku Kinko Hyo NZD/JPY: The NZD/JPY pair is trading slightly below the Tenkan Sen level…