- Despite Friday’s advance, USD / JPY remains on the defensive and with weekly losses.
- The dollar manages to stabilize in the last hours, before US data.
The USD / JPY is rising on Friday, recovering some of Thursday’s losses. It recently climbed to 109.66, and remains close to that level, with an intraday bullish tone, although still with certain dominant negative pressures.
The dollar continues to be on the defensive at the close of the week. Hours ago, USD / JPY fell to 109.35 before rebounding, the lowest level in a week. The tone of weakness around the greenback continues, although it has eased in the last few hours.
The pair, despite not having marked lows in months, is on track to have the lowest weekly close since May. It is trading just above the 20-week moving average (109.65) and if it ends clearly below it, it would be a bearish sign.
After data from Japan, come the US.
During the Asian session several Japan economic reports that had no major impact on the market. The unemployment rate in June fell to 2.9% (less than the 3% of the market consensus), industrial production climbed 6.2%, higher than the 5% expected, retail sales advanced 3.1% in May and housing starts climbed 9.9% in May. In any case, the focus these days in Japan is on the wave of COVID-19 infections, which would lead to the extension and expansion of emerging measures.
In the US at 12:30 GMT, the personal income and expenditure data for June will be published, along with the important underlying price index of personal consumption spending. Later there will be the reading of the Chicago PMI index and the University of Michigan consumer confidence index. When it comes to speeches, those of the president of the Federal Reserve of St. Louis, James Bullard and that of the governor of the Fed, Lael Brainard stand out.
Technical levels
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