JPY Weekly Forecast – Domestic Data Dump!

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Japan is printing a lot of domestic data this week! What will the reports tell us?

Check out the list of potential catalysts if you’re planning on trading the safe haven this week!

Lower-tier economic releases

Domestic reports like these don’t usually move the yen for long, but they can cause intraday retracements or accelerate the impact of existing market themes
Average cash earnings (Sept 7, 11:30 pm GMT) to improve from -1.7% to -1.0% in July
Household spending (Sept 7, 11:30 pm GMT) expected to dip from 13% to -2.0% in July
Final Q2 2020 GDP (Sept 7, 11:50 pm GMT) to be revised lower from -0.6% to -8.0% while the annual rate could drop from -2.2% to -28.0%
Economy Watchers sentiment (Sept 8, 5:00 am GMT) seen improving from 41.1 to 40.0
Preliminary machine tool orders (Sept 9, 6:00 am GMT) to print at -26.0% (from -31.1%)
Core machinery orders (Sept 9, 11:50 pm GMT) to decline by 18.0% after 22.5% drop in June
BSI manufacturing index (Sept 10, 11:50 pm GMT) expected to improve from -52.3 to -10.0 in Q3 2020
Producer prices (Sept 10, 11:50 pm GMT) could see another 0.4% increase after a 0.6% uptick in July

As seen in last week’s price action, the yen can react to results of low-tier reports from the other major economies if they print a generally bullish/bearish picture for global growth
Economic outlook and short-term policy plans from the European Central Bank (ECB) and the Bank of Canada (BOC) can affect JPY’s intraweek trends
Overall U.S. dollar demand can affect USD/JPY’s prices and take the other yen crosses along with it

SMAs show JPY’s short and long-term bearish trends against CAD
Look out for retracement or reversal opportunities on USD/JPY and CHF/JPY on the daily time frame

The yen saw the most volatility against the comdolls and the pound in the last seven days