Forex Technical Analysis, USD/JPY Daily Forecast June 3, 2016

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Forex Technical Analysis, USD/JPY Daily Forecast June 3, 2016

Technical Analysis – The USD/JPY pair fell significantly during the day on Thursday again, but there is still quite a bit of support at the 108.50 level, and as a result we did bounce a bit. Ultimately, this is a market that’s going to be very volatile today due to the fact that the Nonfarm Payroll Numbers come out during the day. At this point in time, I more comfortable simply waiting to see what the daily candle presents before putting any type of money into this marketplace. Regardless what happens, one thing you can count on is that it’s going to be choppy.

In Other View Point – TODAY’S NFP TRADE SETUPS (Technical Analysis)

If you like to see the power of good support / resistance levels, then you have to like trading around NFP. Many traders dismiss it saying it is total gambling and do not participate at all. Well, of course it is high voltage event and if you can’t determine your risk in trading then it is always wise to opt out. We like NFP because,
1.) Sometimes it gives very high risk reward setups.
2.) It provides very good opportunity to get into a well established trend at very favorable levels.
There are no secrets tricks and formulas. Here is how we trade during NFP and so far it has been very profitable endeavor.
– First of all take a look at the major USD pairs and check which one can give us a good risk reward set up.
– Pick your levels ! Here it gets bit tricky. What you call ‘good levels’ ?! We usually take a look at 180 min-0.22% , daily and weekly charts to come up with levels to trade against.
– Never ever put more money on line than you are willing to lose on 25 / 30 pips of risk. Yes, just 25/30 pips, because in our experience, if a level is going to hold then MOST of the time it holds within a range of 30 pips.
– As soon as you are in profit of 20/30 pips which you have risked initially. Take it partially and move the stop.
These are the levels we are looking for trade today.
EUR/USD0.07% – Short near 1.1300
AUD/USD0.40% – Long near 0.7050 7050 ( we have already got our 0.7210 long order filled from last trade idea, so let’s see how that trade works out. Took partial profit at 0.7250 and may get out before NFP depending upon price action )
NZD/USD0.64% – Long Near 0.6750 / 0.6700
USD/JPY-0.07% – Short Near 110.50
As you can see, these levels are too far than the current range. But you never know, NFP or such events can wreak havoc if it misses by huge number and that’s where we get advantage over algos 😉 Ok, here is the final point. If not filled, never chase it !

Technical Analysis

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