As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
USD/JPY: trade ideas for the NFP day
2020-01-10 • Updated
The US dollar had a strong week versus the Japanese yen. USD/JPY opened with a gap down on the W1, but is now trading above the highs of the previous week.
The United States will release Nonfarm Payrolls, Average Hourly Earnings and Unemployment Rate at 15:30 MT time. If the data are better than expected, USD/JPY may test the 110.00 mark. Notice though that on the way there the pair will have to overcome the 100- and 200-week MAs (109.60/70). These lines didn’t let the price higher in November and December and acted as resistance even before that.
The advance of USD/JPY this week has been quite rapid. Such a move makes the USD overbought in the short-term and creates potential for a correction to the downside. Support lies in the 109.30/20 area and at 108.95 (50-day MA) ahead of 108.60 (200-day MA).
Remember that volatility increases during news releases, so proper risk management is necessary.
BUY 109.75; TP 110.00; SL 109.60
SELL 109.35; TP 109.05; SL 109.50
On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
The trend in the scenario above is clearly bearish. We have also had a recent break of structure at the marked horizontal arrows, which means we can expect price to react from the supply zone that broke the structure.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.