Free forex signals – In our USDJPY signal and forecast today we see the pair touching a 15-year high at 111.11, although USD/JPY is trading at 110.54 at the time of writing.
The price has reached a strong resistance area, but the pair is looking increasingly bullish as DXY strengthens and JPY weakens.
May retail sales were up 8.2% year on year which beat the forecast of 7.9%. Retail sales have risen for the third consecutive month and the numbers are better than expected.
However, the data does nothing to encourage the belief that the Japanese economy is turning the corner. Normally the Olympic Games being held in a country would be a boost for the economy, but this is unlikely to be the case for Japan’s hosting.
Takeshi Minami, chief economist at Norinchukin Research Institute, explained why there will be no Olympics bounce: “Many elderly were unlikely to go out and spend money in April and May as there was still a state of emergency or quasi-emergency measures (in major areas). It’s hard to imagine that the Olympics will set off a spending rush.”
Japanese unemployment worse than expected
In other big economic news, Japan’s unemployment came in at 3 percent for May in data released yesterday. The data was worse than expected, rising by 0.2% compared to the 0.1% expected.
The Ministry of Internal Affairs and Communications data means there are now 2.11 million people unemployed, which is a year-on-year increase of 130,000 (6.6%).
Month on month the unemployment rate has jumped 1% with 20,000 being added to the jobless total.
The unemployment figures are indicative of the impact of the Covid pandemic as jobs disappear in hospitality and other service sector employment areas.
The Japanese economy remains an outlier among the advanced economies, failing to see the bounceback being of the US and European economies.
It remains to be seen how the pair will react during the forex trading this week as over in the US we will see the publishing of the Non-Farm Payroll, Unemployment Rate, and the Average Hourly Earnings data on Friday. There is a possibility that the US dollar might slip lower ahead of these high-impact events.
Now let’s get to the latest of our free forex signals.
Free forex signals – Buy USDJPY
Instrument: USD/JPY
Order: BUY STOP
Entry price: 110.77
Stop Loss: 110.39
TP1: 111.37
Recommended Risk: 1%
Risk / Reward Ratio: 1:1.6
Signal validity period: Good until cancelled
Looking to trade forex now? Invest at eToro!
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Share
