It’s NFP week and you know what that means! Lots of possible forex trading opportunities! This week I’m looking at EUR/USD and USD/JPY. How about you?
First up is this breakout setup on USD/JPY. I’m still an overall dollar bull but I recognize that the dollar-buying song has been played way more often than Taylow Swift’s “Bad Blood” these days. We could see a bit of profit-taking ahead of the NFP report or we could see even more traders positioning for a strong dollar rally.
Remember that Janet Yellen and her gang recently hinted that they’re looking at employment numbers as basis for their interest rate hike schedule. A reading above the expected 225K figure could push the ascending triangle breakout into fruition and push USD/JPY up to 105.00. Or not. In any case, I’m planning on entering somewhere within the rising trend line or maybe at a breakout with a stop just below the trend line.
This one is my anti-dollar setup in case the dollar bulls take profit ahead of the big event or if the NFP report came out worse-than-expected. The 1.0800 – 1.0825 area is looking like a solid area of interest since mid-April. A 100-pip stop could be used if I’m targeting the July highs near 1.0900.
What do you think of these setups? Do you have the same biases as I do?