This was a peaceful week to trade and was a fantastic way to end the first month of 2021. Other than the FOMC rate decision, this week was clear of fundamental news. These stable conditions will be short-lived as we have the Non-Farm Payroll release next week.
As for trade setups for next week, USDJPY seems to be an interesting pair. This pair has been on a continuous downtrend since last July. Price was able to consistently create lower highs until recently. If the DXY can break and close above 91.00, this pair would benefit greatly. Traders are waiting for price to clear November’s high before going long.
The swing trade for GBPJPY that was discussed earlier during the week has become active. Price has satisfied the break, retest, and rejection action. Since then, the price has moved +60 pips to the upside. At the moment, price is pulling back to yesterday’s high. This could be an important area for entries to go back to the upside.
Forecasts for next week’s NFP event suggest a stable unemployment rate with an addition of 55,000 jobs. These forecasts should be taken with a grain of salt as they can often be wrong. Traders should rely on the moves that the DXY makes to get more insight.
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- Read yesterday’s breakdown: NZDUSD Profits + GBPJPY Long
