The unemployment rate was released on Friday, 7th August. The unemployment rate was 9.4%. The unemployment rate for June was 9.5%. And it was forecast that the rate for July would be 9.6%, but the analysts were wrong. It came out to be less than the forecast, and it was lower than June rate. This means that the U.S economy is getting better.

Traders were expecting the results to be bad. You can see why I am saying this (look at the charts).

If you look at the first pic, which is a pic of GBPUSD, you would see that there is a candle with 2 long spikes and a small body. This happened because most traders thought that the news wold be bad. So at the moment it came out, they bought the currency. This action made it to go up. But when they later analyse the news, they found out it is positive for the dollar. These traders either closed their positions or the selling force was greater than their force (buying force). This is one of the reasons not to trade on Non-Farm Payroll days and also not to make up your mind before the news come out.

It is funny that the USDJPY didn’t whip saw. It just moved up and continue moving. I believe USDJPY would also go up on Monday. There is no negative news yet to break this up trend now. I may be wrong.