The U.S. dollar, Japanese yen (USD JPY) is a currency pairing and can be traded against each other. The USD JPY is among the most traded currency pairs which fell to new lows level but reduced most of its losses in a week that saw fears about trade worries and a potential movement of Italy leap. FOREX TRADING PICKS
ITALY TRADE WAR:
Italy has prevented the risk of early elections but its new government is planning. The new government may still cause trouble for Europe. Here's how Italy gave strength to euro crisis fears and sparked a global stock...Daily Forex Signals even if most Italians still support the single currency. A new round of elections would have brought a stronger majority for the anti-establishment parties and would have been seen as a de-facto referendum on the euro-zone.
Thus triggering a wide global crisis and the fear of Italy leaving the currency (euro-zone)which results from rising to the highest levels in many years. The crisis arises when the President rejected a Euroskeptic finance minister, Savona. As a compromise was reached this was finally avoided.
Before trade came the crisis encourages a sudden rise in the yen (the safe-haven currency). The US implemented tariffs on steel and aluminum on Canada, Mexico, and the EU. This creates global tensions and a growing fear of trade wars will result in weaker global growth.
The US economy gained 223K jobs, better than expected as report updated. The wages increased by 0.3% and the annual pace ticked up to 2.7%. This helped the currency pair rise toward the end of the week.
ISM Non-Manufacturing PMI, North Korea, and trade:
The outstanding figure on a relatively lightweight calendar is the ISM Non-Manufacturing PMI published on Tuesday. As the NFP is already out, the report will have its own space. An increase is expected. In addition to the lack of top-tier figures, there will be no Fed speeches as they are already in a blackout period ahead of the decision in the following week.
Preparations are also going on for the reinstated Trump-Kim Summit. Any ups and down can impact the safe-haven Japanese yen.
The G-7 came out against America’s behavior on trade, which has worsened with all the world. The new tariffs on steel and aluminum may be joined by tariffs on Chinese tech. Japan is not only a safe haven but also dependent on trade.
See all the main events in the Forex Weekly Outlook
USD/JPY Technical Analysis:
112.20 supported the pair back in December. It is followed by 111.40 which capped the pair in mid-May
Further down, 110.50 was a swing high in February. The round number of 110 serves as a psychological level. 109.50 held the pair back in late April.
109 was a pivotal line within the range. 108.70 was a stepping stone on the way up. 108.10 was a low point in late May and serves as a support line.
Lower, we find 107.50 capped the pair in early April and is a strong line.
106.50 was a resistance line in mid-February. and then resistance in early March. 105.55 was the first swing low.
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