Some of our London session brothas are still out today but that doesn’t mean that the U.S. session traders will stay in the sidelines.
Today I’m looking at some U.S. reports that could bust USD/JPY out of its consolidation.
Before moving on, I’ve listed the top economic events you need to watch out for this week. Read up and see if it can help you plan your trades!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- Biden will push through infrastructure plan if no Republican support – energy secretary says
- Gold prices slip as strong U.S. jobs data lifts yields, stocks
- Stocks gain after bumper U.S. jobs data, bonds smell Fed trouble
- Boris Johnson set to make big announcements on lockdown
Upcoming Potential Catalysts on the Economic Calendar:
- U.S. Markit final services PMI at 1:45 pm GMT
- U.S. ISM services PMI at 2:00 pm GMT
- U.S. factory orders at 2:00 pm GMT
What to Watch: USD/JPY
In case you missed it, USD/JPY has been trading inside a symmetrical triangle since last week.The tight consolidation won’t stop me from looking at the setup this week though!
While a lot of London session traders are still out on long weekend holidays, I bet some of our U.S. session friends already want to price in Uncle Sam’s strong labor market data from last Friday.
The economic calendar also tells me that we’ll see the U.S. ISM services PMI and factory orders data today. If the NFP report was any clue, then we’ll probably see more confirmation that economic activity has improved in March.
A break above last Friday’s resistance opens USD/JPY to a move to 111.00. Prices may move fast at the earliest signs of a breakout so I’ll be watching for break-and-retest opportunities as well.
If USD/JPY trades firmly below the 100 SMA, though, or if it breaks below the triangle support, then I’ll prepare for a retest of the 110.25 previous inflection point, or even a trip to the 110.00 major psychological level closer to the 200 SMA.