Fundamental Analysis of USD/JPY for July 3, 2017

USD/JPY has shown bullish pressure after the recent JPY reports and historic defeat in an election in the capital Tokyo on Sunday. Today JPY Tenkan Manufacturing Index showed an increase to 17 from the previous value of 12 which was expected to be at 15 but Tenkan Non-Manufacturing Index was published with an actual figure at 23 from the previous value of 20 but failed to meet the expected value of 24. Along these economic events, JPY Final Manufacturing PMI showed an increase to 52.4 which was expected to be unchanged at 52.0 and JPY Consumer Confidence was published at 43.3 which previously was at 43.6 and which was expected to increase to 43.9. On the USD side, today ISM Manufacturing Index report is yet to be published which is expected to increase to 55.0 from previous value of 54.9, Construction Spending is expected to be positive at 0.3% which previously was negative at -1.4%, ISM Manufacturing Prices is expected to decrease to 58.5 from previous value of 60.5 and Total Vehicle Sales is also expected to decrease to 16.5M from previous value of 16.7M. To sum up, JPY had mixed economic reports today yet failed to gain against USD currently and as of most of the USD reports are expected to show a worse figure today, we might see some volatility in the market before the daily close.

Now let us look at the technical view, the price is currently above the dynamic level of 20 EMA after breaking above the important level of 110.20. Currently, the price is expected to reach the resistance area of 114.40-115.00 in the coming days. As the price remains above the 20 EMA, a bullish bias is expected to continue further in this pair.

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The material has been provided by InstaForex Company - www.instaforex.com