Here we have highlighted key levels to watch, while taking into consideration possible outcomes from this month's US employment figures.
USD/JPY: Expecting a drift lower and to hold above 102.8 prior to NFP
USD/JPY Hour Chart" title="USD/JPY Hour Chart" width="474" height="242">
Yen weakness has seen the USD/JPY at 5-week highs which is impressive given the weakness of USD these past few weeks. 102.80 is a pivotal S/R level which should hold as support leading up to tonight's release. Due to Japan being export driven and US a consumer the USD/JPY is one of the favoured pairs to trade during NFP and price action can seem 'cleaner' in the event of large moves.
A close this week above 102.8 will produce a Bullish Outside week (or engulfing) and may entice further buying next week.
AUD/USD: 0.908 holds the key for next week
AUD/USD Hour Chart" title="AUD/USD Hour Chart" width="474" height="242">
A close above the 0.908 swing high this week may entice further buying pressure next week and would be a significant victory for the AUD bulls. However whilst AUD has covered ground this week off of the back of positive GDP data I suspect this has been fuelled by short-covering as opposed to an abundance of buyers.
While NFP will have an impact on AUD it will be the strength or weakness of USD which dictates the direction of the AUD/USD around the release. As we approach 0.917 and 0.92 we have plenty of resistance which may scupper any over-extended bullish runs. If (next week) we see an advance to 0.925 we will also meet the Daily 200eMA to add further resistance.
Also keep in mind with have China CPI data over the weekend which may have more of a lasting effect for AUD going into next week.
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