Friday, July 07, 2017

USD/JPY – Before And After Expectations For The NFP



Today is the first Friday of the month and as usual, we are all expecting the announcement of the US NFP data, which always causes a lot of volatility on the market.

On the W1 time frame screenshot you can see the important visible, as well as one possible resistance trend line (marked by a dotted line), which I think the pair might reach either today or on Monday after the NFP data is announced. What is more, according to the economic calendar the expectation is that the NFP data will be very positive.

Despite that I think it is quite possible for the pair to form a corrective drop before the breakout of the potential resistance trend line and then a rally to the 122.00+ target.

I think that in the alternate scenario the pair will drop during the news event to 112.00, but that scenario is less likely in my opinion.

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