Markets Continue to Chill, but NFP Looms Large

forexbrokr (67)in #cryptocurrency • 6 years ago

Hey guys,

Few chores around the house done, morning coffee consumed and now it’s time to hit the charts.

I have still been following the scene, but haven’t been tweeting or blogging forex for too long, so it’s definitey good to be chatting Yen in today’s intraday focus.

Being a Friday, there are as always, plenty of distractions, but traders always have the big data releases on their mind when they’re in positions and I’m no different.

Happy NFP Day!

Market Overview

As we discussed yesterday, the overriding market theme has been the common sense reaction to Chinese retaliatory tariffs.

You guessed it, the SPX is up again overnight and the USD is catching a bid too as money flows out of safe haven currencies like JPY.

It seems that those who were dumping USD on trade war fears are now coming back into the market with fresh longs and as you’ll see in the USD/JPY charts below, the moves have been beautifully predictable.

With NFP coming later tonight, we have a clear potential catalyst for a proper reversal if the numbers cooperate.

Exciting for longs!

Forex Markets

USD/JPY longs you say? Take a look at these couple of charts for the setup I see as in play.

Start off with the higher time frame level that has got me interested (just happening to coincide with the fundamentals spoken about above, who would have thought!) on the weekly:

USD/JPY Weekly

You can see price is in a clear bull trend on the weekly, just stepping up between levels after each new high is made on breakouts.

With price pulling back down to a weekly block inside a weekly support/resistance zone, that’s your level that means we look for longs.

Now zoom into an intraday chart and look for short term pullbacks to buy. I’ve gone the hourly here:

USD/JPY Hourly

Previous resistance turned support... then more precious resistance turned support!

This is the sort of setup that allows you to add into your winners and build a larger position.

Beautiful, isn’t it?

@forexbrokr | Steemit Blog

Market Analyst and Forex Broker.

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