USD/JPY potential trade idea

Earlier in the week I looked at buying USD/JPY heading into the US non-farm payrolls data.

Source: Bloomberg

While US data has remained resilient, the greenback has tapered off a bit and I suspect this will change as traders won’t want to be caught out in case we get a stellar jobs reading later today.

Unfortunately the USD/JPY trade has been stopped out after a sharp drop yesterday. However, there is a fairly solid uptrend support line in place, which could result in a recovery in the price action. The uptrend has been in place since August. Should this uptrend hold and data impress later today then there could be room for a sharp recovery.

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