USDJPY Daily and 4hrs

Daily Trend Bullish

The US dollar was broadly stronger last week, andUSD/JPY climbed about 120 points. The pair closed the week slightly below the 99 line, at 98.87. The upcoming week features eight events. Here’s an outlook for the Japanese events and an updated technical analysis for USD/JPY.

Weak Japanese trade balance numbers hurt the yen last week, as Japan’s trade deficit jumped in July, hitting a four-month high. The US dollar also got a boost from the FOMC minutes, as it’s clear that the Fed plans to taper QE, although the Fed isn’t letting on when it is considering taking action.

4hrs : Bullish

• USD/JPY: Trading the US Pending Home Sales: US Pending Home Sales, a key leading economic indicator, is an important gauge of activity in the housing sector and of consumer spending. A...
• The Yen strengthens as investors shed their holdings in EM economies, Syrian crisis: The Yen outperformed overnight, picking-up ground against almost all of its peers in the Asian session as investors continued to...
• US CB Consumer Confidence rises – dollar recovers: The US CB Consumer confidence rose to 81.5 points. was expected to tick lower from 80.3 to 79.6 (now revised...
• Report: Strike on Syria to start on Friday, after markets close: The US and its allies are getting ready to strike Syria, and the attack could start in the night between...

1. CSPI: Sunday, 23:50. This corporate inflation index has shown improvement pointing to some inflation in the Japanese economy after years of deflation. The index posted a gain of 0.4% in the July release and an identical gain is expected in August.
2. Retail Sales: Wednesday, 23:50. This event is the most important indicator of consumer spending, which is critical for economic growth. The indicator posted a strong gain of 1.6% in July, but the markets are expecting a sharp downturn, with an estimate of just 0.0%. Will the indicator surprise the markets with another solid gain?
3. Manufacturing PMI: Thursday, 23:15. Manufacturing PMI continues to post releases above the 50-point line, indicating expansion in the Japanese manufacturing sector. The markets will be looking for another reading above 50 in the August release.
4. Household Spending: Thursday, 23:30. This important consumer spending indicator has run into some trouble, posting two straight declines. The markets are expecting some improvement in the upcoming release, with an estimate of 0.4%. Will the indicator move into positive territory in the upcoming release?
5. Tokyo Core CPI: Thursday, 23:30. Tokyo Core CPI is the most important Japanese inflation indicator. It has been steadily improving and posted a gain of 0.3% in the July release. The upward trend is expected to continue, with an estimate of 0.4% for the August release.
6. Preliminary Industrial Production: Thursday, 23:50. This important manufacturing indicator has been very inconsistent, resulting in estimates which are often off the mark. After a disappointing decline of -3.3% last month, the markets are expecting a strong gain of 3.9% in August. Will the indicator meet or beat this rosy prediction?
7. Housing Starts: Friday, 5:00. Housing Starts have looked very strong lately, with double-digit gains in the past two releases. The markets are expecting another sharp gain in August, with an estimate of 14.5%.