In last week’s TradeGateHub Live Trading session, USDJPY currency pair hit its target double topping $146. This momentous achievement occurred amidst market hand-wringing over mixed economic signals. The very positive Non-Farm Payroll (NFP) report that came out earlier in the week certainly did the trick and created abuzz and excitement.
Dale, a well-respected trader and analyst, shared his perspective on what the NFP data is likely to mean for USDJPY market action. Beyond that, he acknowledged that the report was worse than expected, something that added to acceleration jitters volatility in the currency markets. This was a more positive signal about a stronger U.S. economy, which changed the investor mood and strategies in the market.
As the session unfolded, traders rushed to figure out what USDJPY was overrunning or impacting. Guiding their projections, they took into consideration foreign exchange (FX) rates, government bond yields and the performance of overall risk assets. Each of these discussions illuminated how these three factors worked in concert to shape the market dynamics and ultimately helped build just enough pressure to reach that $146 target.
Market participants responded to the employment data by creating new trades in USDJPY to put upward pressure on the currency pair. As expected, the U.S. dollar surged after the favorable NFP report. As a result, market participants rapidly recalibrated their expectations for all other currencies and risk assets. The reaction was a perfect example of how closely market segments are tied together. It did highlight the growing importance of economic indicators in shaping trading decisions.
The TradeGateHub Live Trading session provided traders with an opportunity to learn from one another and better understand new strategies. Participants were able to actively discuss and identify notable bullish and bearish trading opportunities. Surprisingly, the USDJPY pair took center stage due to its punchy recent upswing performance. It created an exciting atmosphere because many traders were looking to ride the bullish momentum that was produced after the NFP report.