Delayed US Non-Farm Payrolls' effect on USD? – JPY stronger post-elections: Will it last? [Video]
|- In today’s Market Outlook, let’s take a look at Forex Trading on GBPCHF, the NASDAQ, EURJPY, USDJPY, USDCAD, and EURUSD.
- Looking at USD pairs, we see short-term weakness after a brief period of strength.
- The markets may be a bit slow today as we are all waiting for tomorrow’s delayed Non-Farm Payrolls, which always move the markets.
Also, this week, we have US Retail Sales, US Unemployment Claims, and CPI, so the combination of all this will give the Fed some idea of where the economy is headed, especially in terms of the labour force and inflation.
USD weakness looks like this USDJPY chart for most of the major pairs.
However, JPY is stronger right after the elections as confidence returns to Japan.
However, many analysts believe that this strength is short-lived, so we will be watching pairs like EURJPY to see if price action bounces back off this lower trend line.
USDJPY doesn’t have a clear upward trend channel like the other pairs, but we see a very oversold stochastic oscillator on both the 1-hour and the 4-hour charts.
We talked about one index lagging behind others, and we see it again with the NASDAQ well behind the S&P500, the DJIA, and the Russell2000.
There are many reasons for this, but if investors feel risk-on in the markets any time soon, we may see a resurgence.
We also have GDP from the UK and CPI from Switzerland, so you will find a few charts showing bull and bear runs on both currencies.
If the news moves price action against the trend, you may have an opportunity to trade with the trend.
We have been looking at setting up and using Simple Moving Averages on cTrader, so now let’s look at Exponential Moving Averages (EMAs).
To set one up, click on the Indicators icon and, under Trend, select Exponential Moving Average.
Set the period you want, the Color, and Line thickness.
An EMA is essentially the same as an SMA, but the EMA gives more weight to recent price change so it reacts faster.
Many traders prefer the EMAs as they provide a smoother curve, as we can see by comparing these Moving Average Crosses…SMAs vs EMAs.
As with any technical indicator, find what works for you and backtest, backtest, and backtest.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.