USD pared losses, bounced despite disappointing US NFP last Friday and other economic data. Report showed that factory orders rose only 1.9%, below market expectation at 2.1%. The report came after the US NFP that showed that US economy only aded 151,000 jobs in August, while market expected 180,000 new jobs. July NFP was revised up to 275,000 from 255,000.
Unemployment rate was unchanged at 4.9% in August, but it was worse than expected. Analysts expected August unemployment rate at 4.8%.
The report also showed that average hourly earnings was up only 0.1% in August, below market’s expectation at 0.2%.
USD/JPY remains in upward trajectory. Note that correction has occured to between 20 MA and 50 MA on hourly chart while both MA are rising. Hourly stochastic is neutral but CCI is already oversold. As today’s trading strategy, you might want to look for bullish signal confirmation on a pull-back move to within the intraday support area at 103.731-103.374 with 103.952 as target and 104.310 in extension.
Be careful if the support 103.374 breaks because it will turn the intraday bias into bearish and possibly will be followed by bearish move to 103.153-102.795. In that case, the bullish scenario mentioned above possibly will fail.
Buy on bullish signal confirmation within 103.731-103.374; S/L @ 103.250, T/P @ 103.952 or 104.310