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COZfx: USD/JPY weekly outlook

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COZfx: USD/JPY weekly outlook

Postby dwang » Mon Jul 07, 2014 5:00 am

COZforex: The dollar edged lower against the yen amid profit taking on Friday, but still ended the week higher as a better-than-expected US nonfarm payrolls report for June bolstered the outlook for the wider economic recovery.

USD/JPY was at 102.05 late Friday, off Thursday’s high of 102.25, but still 0.62% higher for the week. COZFX strategist Nigel Boynton said, USD/JPY is predicted to find support at 101.86, and a drop through could take it to the next support line of 101.59. Meanwhile, the pair is predicted to find its first resistance at 102.35, and a rise through could take it to the next resistance line of 102.57.

The Labour Department reported that that U.S. economy added 288,000 jobs last month, well above expectations for jobs growth of 212,000. The previous month’s figure was revised up to a gain of 224,000 from a previously reported increase of 217,000.

The unemployment rate ticked down to 6.1% from 6.3% in May, the lowest in almost 6 years. The data was released a day early, ahead of the Independence Day holiday on Friday.

The upbeat data revived speculation over when the Federal Reserve may start to raise interest rates.

The dollar index, which tracks the performance of the greenback versus a basket of 6 other major currencies, was at 80.31 late Friday, recovering from the two-month lows of 79.84 reached earlier in the week.

In the week ahead, investors will be focusing on Wednesdays’ minutes of the Federal Reserve’s June meeting, with few other major economic reports on the calendar.

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