On Friday, July 1, traders get a chance to work on pullbacks according to inflation and the Japanese labor market.
At 2:30 Moscow time, macro statistics will be updated in terms of the Unemployment Rate, Jobs/applications ratio and Tokyo Core CPI (YoY) - events that have shown significant results in trading on rollbacks.
According to forecasts, the unemployment rate will remain unchanged, jobs/applications ratio and Tokyo Core CPI (YoY) will increase. If expectations are justified, the support of the Japanese yen is likely to strengthen.
As a trading instrument, you can take any currency pair with the yen.
Let's pay attention to the currency pair of average volatility EURJPY.
From the point of view of important macrostatistics of the economies of the Eurozone and Japan, today their condition is about the same, which also favors trade on rollbacks, since neither country has a clear advantage.
Possible options for entering the market (timeframe M15):
1. Forecasts will be justified:
* On the chart of the EURJPY pair, we place a SellLimit order at a distance of 0.2 - 0.25% from the price at the time of updating statistical data.
* Take profit is set at the price level at the very moment of data release or slightly higher.
We close the market at the close of the 8th hour of trading after the opening of the transaction, if Take profit does not work.
* We put a protective order above the High quote of the previous day.
If the order to open a position does not work within 8 hours, we delete it.
2. Japan's unemployment rate will rise, jobs/applications ratio and Tokyo Core CPI (YoY) will decrease compared to the previous period:
* On the chart of the EURJPY pair, we place a BuyLimit order at a distance of 0.2 - 0.25% of the price at the time of updating statistical data.
* Take profit is set at the price level at the very moment of data publication or slightly lower.
We exit the market at the close of the 8th hour of trading after the opening of the transaction, if Take profit does not work.
* We place a protective order below the Low quote of the previous day.
If the order to open a position does not work within 8 hours, we delete it.
3. The indicators of inflation and the labor market have not changed or are multidirectional compared to the previous period:
* Refrain from trading.
Remember about the spread and the rules of money management!
Risk warning!
Trading on financial markets involves a high level of risk and may lead to the loss of investment capital. The MarketCheese team is not responsible for the possible loss of your investment funds.
This content is for informational purposes only and is not intended to be investing advice.
