Forex Market: USD/JPY daily forecast

During Friday’s trading session USD/JPY traded within the range of 102.72-102.14 and closed at 101.99.

At 11:12 GMT today USD/JPY was losing 0.15% for the day to trade at 101.84. The pair touched a daily low at 101.72 at 5:00 GMT, breaching the first key support.

Fundamental view

The NY Empire State Manufacturing Index in the US probably declined to 15.7 in June from 19.01 in the preceding month that was the highest since March 2012.

The index is based on the results of the monthly Empire State Manufacturing Survey. It is conducted in the beginning of each month among roughly 200 executives of manufacturing companies. Participants are asked to share their opinions about different indicators for the preceding month and their 6-month forecast as well, measuring their sentiment. The result is calculated as the difference between the positive and the negative answers. Values above zero are indicative of expansion in manufacturing activity.

The Federal Reserve Bank of New York will publish its official report at 12:30 GMT. In case manufacturing activity in the state of New York expanded more than expected, this would boost greenbacks demand.

In addition, the industrial production in the country probably rose 0.4% in May, after declining 0.6% in the prior month.

The indicator measures the activity of the industrial sector by estimating the change in the total inflation-adjusted value of output produced by mines, utilities and manufacturers in the US. Information is gathered through surveys and is calculated on a monthly basis.

The Federal Reserve is due to release official data at 13:15 GMT. If industrial output rose more than expected, this will heighten the dollars appeal.

Technical view

According to Binary Tribune’s daily analysis, in case USD/JPY manages to breach the first resistance level at 102.18, it will probably continue up to test 102.37. In case the second key resistance is broken, the pair will probably attempt to advance to 102.60.

If USD/JPY manages to breach the first key support at 101.76, it will probably continue to slide and test 101.53. With this second key support broken, the movement to the downside will probably continue to 101.34.