By TraderVox.com
Tradervox.com (Dublin) – Last week’s comments by the European Central Bank President Mario Draghi led to a change of trend in the USD/JPY cross. The pair started the week on a low but latter increased at the cross of the week. This week will be shaped by major events coming from Japan and the US. Focusing on the recent data from Japan, there is deflation in the currency which might force the BOJ to act. Investors will be looking for any indication of such a move from the BOJ official statement and releases. Here is a brief overview of some of the events from Japan.
Preliminary Industry Production will be released on Sunday at 2550hrs. The previous report had shown a drop of 3.1 percent in May. However, Industrial Production in the country dropped more than this registering a drop of 3.4 percent. The market expects an increase of 1.6 percent this time round. Manufacturing PMI and Household Spending will be known on Monday at 2315hrs and 2330hrs respectively.
On Tuesday, at 0130hrs, the Average Cash Earnings will be released. The last release showed a drop of 0.8 percent for June from the same month’s reading last year. The market is looking for a 0.1 percent raise this time round. The Housing Starts report will be announced the same day at 0500hrs GMT. There was an increase of 9.3 percent according to the previous reading and a further increase of 9.5 percent is expected this time round. There will be another report on Wednesday from Japan, the Monetary Base report. In June, there Monetary Base report showed an expansion in Japanese Monetary Base from 2.4 percent to 5.95 percent. The market expects this to continue with a 6.2 percent expansion.
Some of the technical levels to look out for this week include resistance lines at 80.20, 80.00, 79.79, 79.10 and 78.68. Support levels include the 78.00, 77.50, 77, 76.60 and 76.26.
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