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USD/JPY Forecast 30 June 2016

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USD/JPY Forecast 30 June 2016
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The Japanese yen stumbled upon the own economic problems.

Yesterday, the Japanese retail sales showed a decline -1.9% in May against the previous -0.8%.

Today, the industrial production fell by 2.3% in May against the forecast of 0.5%. The housing starts showed the growth 9.0% against the forecast of 4.8%.

As a result, the yen is traded near the level 102.80 the second day. Tomorrow, Japan is to publish a lot of interesting information, but the forecasts are disappointing.

The household spending is expected to decline by 0.2% in May against the growth by 0.2% in April. The Core CPI is expected to decrease by 0.4% against the previous 0.3%. Tankan indexes are expected to fall for the 2nd quarter: Tankan Large Non-Manufacturers from 22 to 19, Tankan Large Manufacturers from 6 to 4.

There is little hope for the growth of consumer confidence, but if the data from Chine will be better than the negative forecasts, the yen will show the active reduction.

Today the US is to publish data on Chicago PMI index - the forecast for the current month 50.7 against 49.3 in May.

How to trade

We would buy call options if the pair rises above 102.90. We would buy put options if the pair falls below 102.32.

Expiry time: 20:00 GMT

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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