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German DAX

It’s very slow trading at the moment, ahead of the NFP report that will be released at 12:30GMT. Expectations are 175K, but what really matters to us is how the market will respond to the numbers. Based on latest price action on FX and stocks, we may see risk-off moves, which means that JPY can see more gains and maybe USD as well, while stocks will make a new leg down.

On German Dax we see nice five waves of decline from 9800 area, which means that bears are still in play for German shares. As such, we should be aware of more downside after a three wave bounce that is now underway up into wave b-circled. We see nice resistance around 9520-9600 from where sell-off may show up today for a retest of weekly lows.

German DAX, 1H

dax 1

 

USDJPY

XXX/JPY pairs have strong correlation with stocks, so we need to be aware of more downside on USDJPY also, but after a completed corrective advance. Wave c may find resistance later today around 101.50-102.00.

USDJPY, 30Min

usdjpy 30