A pretty good NFP should be settling some nerves yet it doesn't feel like it is
No doubt Adam, Greg and Mike have covered every inch of the NFP report by now so I'll keep my views brief;
- I concur that it was a good report, from the wages point of view, but am also sceptical of the comparisons to last year
- USDJPY isn't exactly rocketing away and as the main proxy for the dollar, that's a worry
- The dollar needs to put in a good show or we face heading south once again
The battle is on. USDJPY needs to hold above 117.00 if it's to put in a base here. The NFP data could well be enough to settle some of the Fed nerves we've been seeing yet it's making hard work of it
USDJPY 15m chart
117.20 was a number I had on the pre-NFP list. It was too close to the price to have an effect in the event of a good number but the move down and back made it a little stronger initially. It's effect is waning but still the price can't get and hold above it. It's taken a small step in holding a test of 117.00 but it needs to do much much more.
There's a chance buyers will be rewarded if we close the week above 117.00 and even better above 117.20 and better yet the current high.
Fail to do so and whatever positivity has been taken from the report will dry up quickly.
A quick thanks to Kathy and Boris for hosting the webinar, I hope those of you who joined enjoyed it. Just don't tell the rest of the team about how I lost 10 pips on cable ;-)
