Your Dollar Trade on the Jobs Report
That was a pretty nice jobs report, huh?
Well, maybe not so much.
Boris Schlossberg, managing director at BK Asset Management, says that on balance, the employment data was mixed. He told CNBC's Scott Wapner that while the nonfarm payroll number beat expectations, households continued to slash debt and the University of Michigan consumer sentiment index disappointed.
At the same time, Schlossberg thinks the Federal Reserve is likely to maintain its highly accommodative stance in its next policy statement "because they will have to overbalance because Washington D.C. is in complete turmoil," failing to resolve the fiscal cliff. That, of course would be bad news for the buck.
So what does Schlossberg want to sell the dollar against? In technical terms, it's looking pretty shaky against the yen, he says. "Dollar yen failed today, failed the 83 breakout" after the better than expected payroll report. "It's telling me the market is very hesitant."
So Schlossberg wants to sell the dollar against the yen, entering at 82.00 He wants to set an initial stop at 81.50, and then if that level is reached, he wants to reset it to 80.00. His recommended stop is at 83.00, the level the dollar failed to break through earlier today.
If a deal on the fiscal cliff "gets done, then, of course, the trade doesn't get done," he says. "We're not hurt and the market will rally and go up."
(Read More: On the Next Money In Motion: Twist & Shout)
Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30 p.m. EST and repeats on Saturdays at 7 p.m. EST
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