Good evening team,
Heading into tonights session expect volatility across all USD pairs.
The main focus will be on the US unemployment rate.
The last result was on the 5th of June 2020, the US forecast 19.8% unemployment with the result coming in well under forecast at 13.3%. This resulted in the USDJPY jumping roughly 60pips on the back of the positive result.
USDJPY – 1 Hour Time Frame
Tonight the US is forecasting 12.3% unemployment for the month of June forecasting a 1% reduction from the month previous.
If the results comes out inline or under the forecast it will suggest the economy is recovering faster than the market initially anticipated. This may result in USD strength (in the short term). We are looking to buy the USDJPY in line with the forecasts tonight.
USDJPY – Technical Analysis
The USDJPY is trading on a key support line at the 107.40 handle. The market has used this level numerous times previously both as support and resistance.
Trade Setup: BUY USDJPY – Market execution, current price 107.44, stop loss set at 107.04 and take profit 108.14.
Stop loss: 40 pips
Take profit: 70 pips
Please watch the trade and manage aggressively. If the USDJPY breaks to the downside of the trend line look to close out the trade. Throughout last month there were major protests across the US which may have resulted in an increased unemployment, this is one risk to the position.