Non-Farm Payrolls is scheduled for Friday morning at 8:30 a.m. ET. With the worsening outlook on the US economy, combined with an illiquid market as the equity markets are off, and so many FX desks will lightly staffed, the possibility for a outsized move following an NFP is quite real. To shake things up even more, we heard rumors of 3k added from one of our banks, a little shy of the 130k expected. Anything even close to that in an illiquid market and Sterling might ring the 2.0 bell tomorrow.

On the daily wave count, I have a 1.618 Fib projection of wave 1 and 2 pointing to a minimum target of 2.008.



I am already long a piece of Sterling at 1.9700, and will be looking to buy more between there and 1.9650. Stops will be below 1.9640. I will do my best to bring a piece of this into the NFP. As I mentioned above, I believe the potential reward far outweighs the inevitable risk of carrying positions into NFP.



There are a pair of symmetrical projections equaling 326 points and 202 points projecting 119.05-119.15 to be the end of this wave 4. Added to which, .618 retracement of the big wave 3 down calculates out to be in the same neighborhood, at 119.14. I can all but promise you the market will at least hesitate at this level, if not fully reverse. I will continue to play USD/JPY to the downside while 119.15 contains the advance. I am offered at 119.05 and 119.15, with 119.35 stops.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.