USD/JPY. Non-farms caused a bloodbath, but 160 held for now. One thing the market loves about Friday's Non-farms is the ability to take out stops for everyone in just a couple of minutes. First, a strong employment report comes out: 172K new jobs versus the forecast of 85K. Algorithms instantly grab the dollar, USD/JPY breaks through the 160 figure and shoots up to 160.266. It seemed like the bulls got everything they dreamed of: strong data, a breakthrough of a psychological level, and full control over the situation. But then the classic scenario began. Buyers of the dollar didn't have time to celebrate their victory before the market turned almost without a pause. The next wave pressed the price down to 159.704, triggering stops for those who jumped into long positions on the breakout. In just a few minutes, the market managed to punish both sides and show why trading the news is considered a separate kind of sport. The most interesting part is not even the jump itself. Much more interesting is that the strong data was not enough to hold above 160.20. Any attempt to move above the 160 figure still faces significant resistance. Who is sitting there - exporters, large funds, or just a crowd fearing possible intervention by Japanese authorities - is not so important right now. The fact remains: the 160 level continues to act as a magnet and at the same time as a concrete wall. From a technical point of view, nothing fundamentally changed. The uptrend remains intact on higher timeframes, and the 159.5 - 159.7 zone remains the nearest significant support. But after such a rollercoaster, jumping into the market based on emotions is a direct path to adding to the statistics of those affected by Non-farms. Until the dust settles and it becomes clear where the hourly and daily candles will close, the best trade for many is simply to observe. Today the market has already earned enough from those who were too confident in their correctness.
