Forex Fundamental Analysis & Forecast by RoboForex

[Vlad RF]

USDJPY analysis: the yen continues to lose ground

The USDJPY pair continues its ascent, with no significant correction expected in the near term.

USDJPY trading key points

• 10-year Japanese government bond (JGB) auction – 1.091%
• Japan’s monetary base (y/y) – 0.6%
• USDJPY targets: 163.30, 158.90, 157.40

USDJPY fundamental analysis

The 10-year Japanese government bond (JGB) auction did not help the yen. The USDJPY rate continues its ascent. Insignificant news does not rescue the yen from depreciation at this stage.

Japanese authorities’ actions are widely viewed as playing for a rival, with attempts to strengthen the yen ending with another increase in the USDJPY rate. Bulls are aggressive and seem to have a clear strategy – to make the most of the yen’s depreciation.

Market analysis for other instruments can be found in the section "Market analysis" on our website.

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

EURUSD continues to strengthen in anticipation of speeches by the ECB and FOMC officials

The EURUSD pair is rising ahead of upcoming ECB and FOMC data. After the release of the FOMC minutes, another corrective wave may follow.

EURUSD trading key points

• The eurozone services PMI is projected at 52.6, lower than the previous 53.2
• A speech by ECB official Philip R. Lane
• A speech by FOMC member John C. Williams
• US nonfarm payrolls: prior reading of 152,000 and a forecast of 163,000
• US initial jobless claims: previous reading of 233,000 and a forecast of 234,000
• A speech by ECB President Christine Lagarde
• FOMC minutes release

EURUSD fundamental analysis

The EURUSD pair continues to strengthen on the news. The euro awaits speeches by ECB official Philip R. Lane, ECB President Christine Lagarde, and FOMC member John C. Williams, which may adjust the EURUSD rate and help strengthen the euro against the US dollar.

Nonfarm payrolls are projected to rise, and initial jobless claims are expected to increase as well. At this stage, it can be preliminarily concluded that these indicators will not significantly impact the EURUSD rate.

The FOMC minutes will be released at the end of the US trading session, potentially increasing volatility and temporarily supporting the EUR.

Market analysis for other instruments can be found in the section "Market analysis" on our website.

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

JPY is gaining momentum, with the US economy slowing

The USDJPY rate is declining ahead of Friday’s US nonfarm payrolls report.

EURUSD trading key points

• The Federal Reserve’s June meeting minutes confirm US economic slowdown
• The likelihood of a Federal Reserve interest rate cut in September increased to 68% from 56%
• Traders are awaiting the release of Friday’s US nonfarm payrolls report

USDJPY fundamental analysis

The US dollar declines on Thursday, influenced by weak economic indicators. Investors believe there is a gradual turn in the flow of US economic data, and the Federal Reserve’s June meeting minutes confirm economic slowdown and easing inflationary pressure. Market expectations about a potential Federal Reserve interest rate cut in September rose to 68% from 56% a week earlier.

Traders may adjust positions in anticipation of Friday’s US nonfarm payrolls report, a key indicator for assessing the economy’s state. This may be the primary reason behind the USDJPY pair’s current decline.

Overall, investors continue to monitor the JPY closely, considering the possibility of a currency intervention by the Japanese government. However, Japan’s Ministry of Finance stated that the goal of a potential intervention will not be the yen rate but its excessive volatility. Current market conditions do not meet the criteria for Japanese authorities to intervene.

Market analysis for other instruments can be found in the section "Market analysis" on our website.

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team