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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY
- US Dollar may test fresh highs as markets remain especially volatile

- Three major global central bank meetings and a US NFPs report promise big moves ahead

- Our volatility-friendly Breakout2 strategy may do well across Dollar and Yen pairs

Traders brace for big market moves on a week with three major central bank meetings and a highly-anticipated US Nonfarm Payrolls report. How are we trading?

What started as a sharp sell-off in Emerging Markets led to similarly pronounced moves in the Developed world. And indeed, subsequent turmoil leaves us looking higher for the Japanese Yen and the US Dollar in particular.

FX Options markets shows that traders are betting on/hedging against the largest forex market moves since September, 2013—the week of the infamous “No Taper” Fed meeting.

We see little option but to position ourselves for similarly large FX moves in the days ahead, and our volatility-friendly Breakout2 trading strategy could do well across Japanese Yen and US Dollar currency pairs in particular. To a lesser extent we likewise favor our trend-following Momentum2 trading strategy. Past performance is NOT indicative of future results, but it has thus far done well amidst recent flare-ups in market tensions.

We’ll keep a close eye on the Japanese Yen and keep traders updated via our forex real time news feed. Take a look at full strategy preferences below and sign up for future e-mail updates via my distribution list.

Forex Volatility Prices Have Jumped, Favoring Stronger Market Moves Ahead

forex_US_Dollar_and_Japanese_Yen_volatility_body_Picture_1.png, Huge Week for Markets Warn of Big Dollar, Yen MovesSource: OTC FX Options Prices from Bloomberg; DailyFX Calculations

DailyFX Individual Currency Pair Conditions and Trading Strategy Bias

forex_US_Dollar_and_Japanese_Yen_volatility_body_Picture_2.png, Huge Week for Markets Warn of Big Dollar, Yen Movesforex_US_Dollar_and_Japanese_Yen_volatility_body_Picture_3.png, Huge Week for Markets Warn of Big Dollar, Yen MovesAutomate our SSI-based trading strategies via Mirror Trader free of charge

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