Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Forex - USD/JPY weekly outlook: June 14-18

Published 06/13/2010, 10:45 AM
USD/JPY
-
Investing.com – During volatile trade, the yen rose against the U.S. dollar last week before giving up its gains following an upbeat report on consumer sentiment in the United States.

USD/JPY pulled back from Monday's high of 92.08 to reach the week's low on Tuesday at 90.85; the pair subsequently clawed back up to hit 91.65 at the close of trade on Friday, advancing 0.2% on a weekly basis.

The pair is likely to find resistance at 93.64, the high of May 13, and support at 89.82, the low of May 27.

Next week, Japan's central bank will make a key interest rate decision, and publish a monetary policy statement, monthly report and the minutes from its last policy-setting meeting. Japan will also release data on its manufacturing sector and industrial production.

The United States, meanwhile, will release reports on import prices, U.S. Treasury debt, building permits, industrial production consumer price inflation, and initial jobless claims.

Industry data will also be published on the U.S. manufacturing sector and housing market. The Federal Reserve chairman, Ben Bernanke, is also due to speak at a public engagement.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/JPY. The guide ends on Thursday, since no such events take place on Friday.

Sunday, June 13

Japan's Ministry of Finance will release quarterly data on activity in the country's manufacturing sector, based on a survey of large manufacturers. The results of the survey are presented in the form of an index, which provides a leading indicator of economic health.

Monday, June 14

Japan will publish a monthly report on industrial production, measuring the change in the total value of output produced by manufacturers, utilities, and mines.

Tuesday, June 15

The Bank of Japan will announce a decision on its benchmark interest rate, after which it will publish a monetary policy statement and hold a press conference. Traders will likely pay particular attention to comments made by senior BOJ officials during the press conference, since it covers the factors that affected the interest rate decision, the overall economic outlook and inflation.

Key U.S. data will be published on import prices and the manufacturing sector in New York state.

The U.S. Treasury will also publish its TIC Long-Term purchases report, which measures the difference in value between foreign long-term securities purchased by U.S. citizens and U.S. long-term securities purchased by foreigners.

Later in the day, Japan will publish a report on tertiary industry activity, measuring the change in the total value of services purchased by businesses.

Wednesday, June 16

The BOJ will publish its monthly report, which contains the statistical data evaluated by the central bank's Policy Board members while making their last interest rate decision. The report also provides a detailed analysis of current and future economic conditions.

Also Wednesday, the U.S. will release a key report on building permits, a signal of future construction. Data will also be published on U.S. housing starts, mortgage applications and industrial production.

The U.S. Energy Information Administration, meanwhile, will publish data on crude oil inventories.

The U.S. will also release heavily anticipated PPI data, and Bernanke is scheduled to speak at an event in New York, where traders will likely scrutinize his comments for clues to future shifts in monetary policy.

Thursday, June 17

The U.S. will publish key CPI data and a weekly report on initial jobless claims, an important indicator of overall economic health. A closely watch report on manufacturing activity in Philadelphia will also be released.

Meanwhile, the BOJ will publish the minutes from its last monetary policy meeting, providing insights into the economic conditions that influenced the BOJ policy board's most recent interest rate decision.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.