USD/JPY Approaches Key Resistance as US Retail Sales Set to Increase

Japan – Core Machinery Orders

On Sunday, at GMT 11:50 p.m., the Japanese Cabinet Office released the month-over-month national core machinery orders. It measures the changes in the total value of new purchase orders placed by the private sector with the local Japanese manufacturers. However, this figure excludes shipping related machines and utilities.

Binary options traders consider the core machinery orders figure to be an important leading indicator of the Japanese productions. It is because a rising trend of purchase orders provides an indication that Japanese manufacturers are about to increase their economic activity in order to deliver the orders.

Last month, the core machinery orders figure suggested that purchase orders decreased by -3.9%. The forecast for month was set at an increase of 2.5%. However, the actual figure came out much better than what the market was expecting, at 10.1%.

United States – Retail Sales

On Thursday, at GMT 12:30 p.m., the US Census Bureau will release the national month-over-month retail sales figure. It measures the changes in the total value of all sales made at the retail level in the country over the past month.

Retail sales data are considered by binary options investors to be the primary gauge of consumer spending and confidence. This is because when consumers are confident about their future financial situation, they tend to spend more.

Last month, the US retail sales value increased by 0.3%. Analysts are expecting that this month, it would likely increase by an additional 0.4%.

USD/JPY Forecast

Since March 25, the USD/JPY remained bullish and climbed up by around 650 pips. However, after reaching near the 111.00 level, it found a strong resistance. On the last week of May, the USD/JPY started a bearish retracement. But, soon it found support near the 108.15 level. Currently, the pair is once again approaching the 111.00 level.

The Japanese core machinery orders just jumped by 10.1%. However, analysts are expecting the US retail sales to increase from 0.3% to 0.4% this month. As the retail sales data in the US is more important compared to the Japanese core machinery orders figure, it will have a greater market impact. We believe it would set a bullish fundamental outlook for the USD/JPY this week. Therefore, if the USD/JPY closes above the resistance near 111.00, it would likely attract additional bullish momentum in the market.

Hence, US binary options traders should look out for trading opportunities above this major resistance level around 111.00.

BTC/USD Forecast

Since early February, the BTC/USD remained range bound. During the last few months, the bitcoin price mostly traded sideways, where it found a strong support near the 6450.0 level. In the last two weeks, the BTC/USD once again turned bearish. Currently, it is testing the 6450.0 level.

Earlier this week, the US bank Wells Fargo said it will no longer allow its credit card customers to purchases any cryptocurrency using their cards. “We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment,” said Wells Fargo.

As one of the largest banks in the US banks, Wells Fargo issues a lot of credit cards. If its customers fail to make cryptocurrency transactions, it will certainly have a negative impact on the volume. Hence, the decision from Wells Fargo will likely have a bearish impact on the BTC/USD price.

Hence, US bitcoin traders should look out for trading opportunities below this major support level around 6450.0.

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