The greenback gained after US Non-Farm Payrolls was better than expected in July, also a gain in wage. This raised the chance for a rate hike by the Fed this year.

USD hit weekly high against euro and Swiss franc and turned positive against yen.

US economy added 255,000 jobs in July, after revised higher at 292,000 in June. Economists expected a number of 180,000 in July.

CME FedWatch showed that after the US Non-Farm Payrolls was released, Fed fund futures assessed 18% chance for the Fed to raise its rate in next month meeting. Yesteday, the chance was just 9% for a rate hike in September. For December meeting, futures showed almost 47% chance for a rate hike, up from 32% that was assessed in Wednesday.

Technical Analysis:

USD/JPY has jumped above 20 MA and 50 MA on hourly chart. 20 MA has crossed above 50 MA, but note that hourly stochastic has crossed down and CCI is falling from its overbought area.

As today’s trading strategy, you might want to look for bullish signal confirmation on a pull-back move to within the Fibonacci support area at 101.597-101.317 with 101.771 as target and 107.052 in extension, but be careful if the price managed to break below the support at 101.317 because it will turn the intraday bias bearish and possibly will push USD/JPY down to 101.143-100.862.

Trading Plan:
Buy on bullish signal confirmation on pull-back move to within 101.597-101.317; S/L @ 101.200, T/P @ 101.771 or 107.052

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