Posted by Edward Moya on Fri, Jun 05, 2015 @ 09:03 AM
Save time by using the PremiereTrade Software. Green you Buy, Red you sell. Here is the USD/JPY in the Green and moving to the Upside.
USD/JPY skyrocketed over a 100 pips to 125.84 before settling near 125.65, following an incredible Non-Farm Payroll Report. The U.S. economy added 280k jobs in May and the unemployment rate ticked higher to 5.5% as the participation rate climbed to 62.9%. Market consensus was for a rise of 225,000 jobs and for the unemployment rate to stay steady at 5.4%. US Debt Treasury Yields also climbed to their highest levels since October.
Price action on the weekly USD/JPY chart shows the breakout higher is tentatively finding resistance from the 161.8% Fibonacci expansion level of the 2014 December high to low leg. Since we are close to the end of the trading week, we may see prices stay around these current levels. Next week, further upside may eventually target the 128 handle but may have some difficulty breaking above the 130 price barrier. To the downside, key support will come from the 125.00 handle.
The trade: Buy USD/JPY 125.55, with a stop loss at 124.95 and take profit at 127.35. The risk/reward ratio is around 1:3