USD/JPY Forecast: Risk-on weighs on the JPY
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UPGRADEUSD/JPY Current price: 106.11
- Resurgent optimism about economic recoveries is boosting high-yielding assets.
- US macroeconomic calendar to offer little of interest this Tuesday.
- USD/JPY bullish in the short-term, but still below the 106.20 price zone.
The market’s mood improved this Tuesday, with high-yielding assets on the run and safe-haven ones under pressure. The sentiment got boosted by US President Trump, who said late Monday that there’s no reason why the US economy can’t grow at a 20% pace in the third quarter, adding that he could cut taxes on capital gains and for middle-income families. The greenback is under selling pressure across the board, which means a limited advance in USD/JPY, now trading in the 106.10 price zone.
Japan published the June Current Account, which posted a surplus of ¥167.5 B, beating the market expectation. The Trade Balance deficit shrank from ¥-556.8 B to ¥-77.3 B in June, while the Eco Watchers Survey missed expectations, with the Outlook down to 36 from 44 in the previous month. The US session will be light in terms of macroeconomic releases, as the country will publish the July Producer Price Index.
USD/JPY short-term technical outlook
The USD/JPY pair is neutral-to-bullish in the short-term, although still below the 106.20 price zone, the one to surpass to confirm another leg higher. The 4-hour chart shows that the pair is above its 20 and 100 SMA, as technical indicators lack directional strength but hold within positive levels. Chances of a bearish extension are limited, as the pair would need to fall below 105.70 to attract sellers.
Support levels: 105.70 105.25 104.90
Resistance levels: 106.25 106.60 107.00
USD/JPY Current price: 106.11
- Resurgent optimism about economic recoveries is boosting high-yielding assets.
- US macroeconomic calendar to offer little of interest this Tuesday.
- USD/JPY bullish in the short-term, but still below the 106.20 price zone.
The market’s mood improved this Tuesday, with high-yielding assets on the run and safe-haven ones under pressure. The sentiment got boosted by US President Trump, who said late Monday that there’s no reason why the US economy can’t grow at a 20% pace in the third quarter, adding that he could cut taxes on capital gains and for middle-income families. The greenback is under selling pressure across the board, which means a limited advance in USD/JPY, now trading in the 106.10 price zone.
Japan published the June Current Account, which posted a surplus of ¥167.5 B, beating the market expectation. The Trade Balance deficit shrank from ¥-556.8 B to ¥-77.3 B in June, while the Eco Watchers Survey missed expectations, with the Outlook down to 36 from 44 in the previous month. The US session will be light in terms of macroeconomic releases, as the country will publish the July Producer Price Index.
USD/JPY short-term technical outlook
The USD/JPY pair is neutral-to-bullish in the short-term, although still below the 106.20 price zone, the one to surpass to confirm another leg higher. The 4-hour chart shows that the pair is above its 20 and 100 SMA, as technical indicators lack directional strength but hold within positive levels. Chances of a bearish extension are limited, as the pair would need to fall below 105.70 to attract sellers.
Support levels: 105.70 105.25 104.90
Resistance levels: 106.25 106.60 107.00
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