Here’s a quick little resistance play meant for the Asia/Europe trading session. It appears sellers held ground just under 103.00, so we may see it hold once again on another retest of that level.
I say “for the Asia/Europe trading session” because we have the US Non-Farm Payroll report tomorrow, and if our orders do not trigger before then, we will close open orders to avoid event risk.
Yes, US Jobs data is the mother of all economic events as job growth is a good indicator of an economy’s strength or weakness. Expectations are of another month of job losses, which would add to fears of recession in the United States and possibly a further US Dollar sell off. Of course, a surprise rebound in job growth should lead into a short term US Dollar rally. To read more, check out DailyFX’s post on NFP in our forums
On the chart, we can see the pair found resistance just below 103.00. I look to short there to play a weaker jobs number and growth outlook for the US. Again, if no trade is triggered before 8:30 am EDT, then I will cancel my open orders.
Short USD/JPY at 102.90, stop at 103.60, pt1 at 102.20, pt2 at 101.00
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Stay tuned, good luck and good trading!