Forex Market: USD/JPY daily forecast

During yesterday’s trading session USD/JPY traded within the range of 101.75-101.91 and closed at 101.83.

At 7:45 GMT today USD/JPY was gaining 0.07% for the day to trade at 101.94. The pair touched a daily high at 102.01 at 7:10 GMT, breaching the first key daily resistance level.

Fundamental view

United States

Home values in 20 large cities throughout the United States probably rose at an annualized rate of 9.9% in May, preliminary analysts’ estimates showed. In April, home prices climbed at a rate of 10.82%, that was the weakest since February 2013. S&P/Case-Shiller will release the official rate at 13:00 GMT. Higher than expected reading would bolster greenbacks demand.

At the same time, confidence among US consumers probably improved in July. The corresponding index probably rose to a reading of 85.5 from 85.2 in June. The Conference Board research group is to announce the results from its survey, encompassing over 5 000 households in the country, at 14:00 GMT. If the gauge of confidence shows a better than expected performance, this would certainly heighten the appeal of the US dollar.

Japan

Japan’s Ministry of Economy, Trade and Industry (METI) will release Junes preliminary reading of the nation’s Industrial Production index at 23.50 GMT. The nations industrial output probably slowed down 1.2%, after in May the index came in at 0.7%.

The index measures changes in the volume of production and refers to the amount of goods produced by industrial enterprises. The index is based on a study of production (Current Survey of Production). The survey covers 530 types of goods. This is the percentage change from the previous month, according to final data.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 101.85. In case USD/JPY manages to breach the first resistance level at 101.93, it will probably continue up to test 102.02. In case the second key resistance is broken, the pair will probably attempt to advance to 102.10.

If USD/JPY manages to breach the first key support at 101.75, it will probably continue to slide and test 101.67. With this second key support broken, the movement to the downside will probably continue to 101.59.

In weekly terms, the central pivot point is at 101.65. The three key resistance levels are as follows: R1 – 102.12, R2 – 102.40, R3 – 102.87. The three key support levels are: S1 – 101.37, S2 – 100.90, S3 – 100.62.