Nonfarm payroll will take center stage

During the session on Friday, we have the US Nonfarm Payroll numbers coming out and of course that will be the biggest thing that market pay attention to. We also have Canadian employment numbers, so that could make for opportunities in the Canadian dollar as well, but we believe most of the market participants will focus on what happens with the US dollar, and then trade accordingly.

WTI Crude Oil looking soft

The WTI Crude Oil market looks very soft as we tried to rally on Thursday, but turned back around to form a bit of a shooting star. With this, the market is now sitting just above the $40 level, and as a result if we can break down below the $40 level, we believe the market will then reach towards the $38 level. Even if we rally from here, we believe that it’s only a matter time before we see enough resistance to start buying puts again. We have no interest in buying calls.

USD/JPY looks supported

The USD/JPY pair went back and forth during the course of the session on Thursday, as we continue to hover around the 123 level. Any type of move higher should be a buying opportunity for calls, as we believe the market will try to reach towards the 125 handle given enough time. A pullback at this point in time, could very well be a nice call buying opportunity as well as we see plenty of support down to the 122 level.

Dow Jones 30 pulling back

The Dow Jones 30 initially tried to rally during the day on Thursday but found enough resistance near the 17,900 level again to fall backwards. However, we think there’s more than enough support below, so we are waiting to see whether or not we get some type of bounce that we can start buying short-term calls in order to take advantage of the overall uptrend.