The USD/JPY awaits tomorrow’s jobs report

The Dollar has been strengthening during the whole week, supported by the strong fundamentals out of the US. It seems like the Greenback is taking a breather today, but we must keep in mind that tomorrow we have the Non-Farm Payrolls report, which is expected to show that the US economy has created 230 thousand new jobs during the month of July.

If the reading comes out in line or better than expected, then we may see the USD/JPY try to break above the 103.00 level where it has stall its rally for now, as shown on the daily chart below. Today´s daily candlestick has formed as a Doji and this is an indication that the pair is very undecided at the moment. This is most probably due to the fact that the markets usually go into a quiet mode before the NFP report.

Will the USD/JPY reach the 103.00 level?

The Dollar keeps gaining strength versus most of the major currencies, especially versus the Yen, after the better than expected Gross Domestic Product report out of the United States. The data shows that the US economy has been expanding at a sustainable rate and this may prompt the Federal Reserve to raise its interest rates.

On the daily chart below of the USD/JPY we can see that the price has been trending higher with a strong bullish momentum and it may try to touch the 103.00 level. On the previous visit of the price to that level, the pair bounced rapidly to the downside from there, but this time around we must be careful, because if the fundamentals out of the US keep coming out better than expected, then the pair may try to break above the 103.00.

Golden Cross – USD/CAD 4 Hour Chart

The “Golden Cross” is when the 50 or the 55 period moving average crosses above the 200 period moving average. On the 4 hour chart below of the USD/CAD, we can see that the 55 Exponential Moving Average (purple line) crosses above the 200 Exponential Moving Average (blue line). This is an indication that the bullish momentum may continue. However, the long entry point was at the pullback of the breakout of the price above the 1.0800 level. This is an entry signal from a pattern known as the Breakout and Pullback Formation.

At the moment we just have to wait and see if the price really reaches the 1.0900 level where it may find some good resistance.

The Kiwi gets closer to the 76.4% Fibo

The NZD/USD has been losing a lot of ground lately and it is getting closer and closer to touching the 76.4% Fibonacci Retracement level as shown on the daily chart below. On the same chart se can see that just below that Fibo level, we also have the round number 0.8500, which could also serve as a potential support level for the pair. Therefore, we must be attentive in case the price keeps dropping lower, because we may see a bounce to the upside from that zone.

The 200 EMA on the Weekly halts the Euro

The 200 period exponential moving average can at time behave as a very good dynamic area of support or resistance. That is why we are seeing on the weekly chart of the EUR/USD that the pair has reached its 200 EMA and it has stopped for now its decline there. The price may close for the week around the current levels, but we must be attentive to next week’s moves, because we could either see a breakout or a bounce from the current 1.3424 zone. If the price keeps dropping, then a visit to the 1.3400 level could be interesting. 

The GBP/USD is dropping like a rock

The Pound has been hurt badly by the Greenback and as we see on the Daily chart below of the GBP/USD, the pair has broken below the 1.7000 round number level and it looks like it is keeping its bearish momentum. Around that same zone we can also see the 55 Day Exponential Moving Average, which has not been able to hold the price for now. It the pair keeps dropping, then we should wait for confirmation of the breakout and a possible pullback to the same 1.7000 for a possible short entry. But in order to see this scenario develop, we are going to have to wait until next week.

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