- USD/JPY drops to the lowest levels since March 12, 2020.
- Japan flashes softer than expected and prior Unemployment Rate, upbeat Industrial Production for June.
- Uncertainty over the fiscal package, Presidential election and virus woes recently weighed on the US dollar.
- The second-tier data from Japan and America will join risk catalysts to direct near-term pair moves.
USD/JPY declines to 104.70 as Tokyo markets open for trading on Friday. The yen pair prints a seven-day losing streak while taking rounds to the multi-day low. While the broad US dollar weakness is the major reason for the pair’s south-run, the recently published Japanese data add strength to the pair bears.
Nothing for the bulls…
In addition to the broad risk-off mood and the greenback’s selling, upbeat statistics from Japan also close door on the face of the bulls.
Recently, Japan’s June month Unemployment Rate slipped past-3.1% forecast and 2.9% prior to 2.8% whereas the preliminary readings of Industrial Production recovered from -8.9% previous contraction to +2.7% versus +1.2% forecast. It’s worth mentioning that the US second quarter (Q2) GDP slumped to -32.9% compared to -34.1% forecast and -5.0% previous readouts during the previous day.
Talking about the risk, the rapid increase in the coronavirus (COVID-19) wave 2.0 becomes the key reason backing the traders' rush to risk-safety. While updates from Texas become the latest, Tokyo’s above 360 numbers also make it the case worth observing. Elsewhere, US policymakers are jostling with the much-awaited fiscal aid package. Policymakers earlier signaled a deal on the unemployment claim benefits and probably mild agreement on the broad package but news off-late defies any optimism concerning the same.
Also joining the league of market challenges is US President Donald Trump’s push for a delay in the November month’s Presidential Election while citing mail-in ballots.
Amid all these catalysts, US 10-year Treasury yields trying to recover from the previous day’s plunge to March month lows, also the record bottom, while S&P 500 Futures mark 0.50% gains to 3,265 by the press time.
Looking forward, Japan’s housing and consumer confidence figures might entertain short-term traders before highlighting sentiment data from the US. However, major attention will be given to the risk factors, mainly the virus updates, US election updates, fiscal news, etc.
10-day EMA near 105.60 will precede June month’s bottom close to 106.10 while challenging the pair’s near-term recovery, if any. Until then, 104.50 and 104.00 could lure the sellers ahead of highlighting March 12 low of 103.08.
Additional important levels
|Today last price||104.69|
|Today Daily Change||-0.04|
|Today Daily Change %||-0.04%|
|Today daily open||104.73|
|Previous Daily High||105.3|
|Previous Daily Low||104.68|
|Previous Weekly High||107.54|
|Previous Weekly Low||105.68|
|Previous Monthly High||109.85|
|Previous Monthly Low||106.08|
|Daily Fibonacci 38.2%||104.92|
|Daily Fibonacci 61.8%||105.06|
|Daily Pivot Point S1||104.51|
|Daily Pivot Point S2||104.29|
|Daily Pivot Point S3||103.9|
|Daily Pivot Point R1||105.12|
|Daily Pivot Point R2||105.52|
|Daily Pivot Point R3||105.74|
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