First Friday of the Month is the much awaited one for Currency Traders as It has been the day for me as well since past 9 years or so, as I always wait for the weekly and monthly entries after the data is released.But any good figures this time will put more pressure on Fed and Jenett Yellen before the next meeting on June to consider rate hike and US unemployment is the biggest concern that US face before they start easing since a decade or so ago.
We have seen strong bullish momentum driving Euro to face resistance around 1.1610 handle and after that market Liquidate quite immensely, as you can expect bulls given away at the end of the month profit taking, and also take cautious measures in the Non Farm payroll week. Any good Forex trader will do that coz you never know how much risk can data bring to the market, any strong deviation up and down will drive the sentiment anywhere and I have seen NFP reverses the overall cycle trends as well. So, be prepare with your charts and let the storm settle down and wait cautiously for your entries and IF there is deviation I would bet on Usd/jpy bulls to drive usd/jpy higher.
Also Read :- Trading is all about buy low and sell high.Euro dollar sentiment turns bearish again
I have manage to spot weakness in ongoing bullish momentum till the price reach 1.1600-20 area, because price has manage to liquidate immediately as it reached the previous resistance, even strong US data hit the market and support weakness of Dollar
It was one of the situations that the weaker group of all the participants known as retail traders were pushing the price up amid previous breakouts and as we all know If price Advertise higher without or very weak strong money participation, it liquidate immediately at those strong turning points as it happened in the case of Euro, and It could just be a start of downside rally which can extends towards 1.1050-10 area.
I recommend buying Usd/jpy after weak US Employment Data
Last Friday, Non-Farm-Payroll data was about to published and Before that release I manage to pick short term bottom in Usd/jpy and recommended buying around 106.85 Area, and price has not pause after that bull participation. You can see the chart as I will update the chart in my next post with weekly and daily levels to watch and I am very positive once again on this currency pair for a test of 111.40 area and There I will have to track the activity again, and let you what's ahead. Price is trading today around 108.90 Area, with strong support around 108.22 area.
Also Read :- How I manage to pick bottom in US Indexes.