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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

Market risk sentiment

  • 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

Technical snapshot

  • Stochastic considers NZD/JPY “overbought” on the daily time frame
  • CAD/JPY and AUD/JPY may soon reach overbought status
  • EUR/JPY remains in neutral territory for now
JPY Forex Pairs Stochastic from MarketMilk
JPY Forex Pairs Stochastic from MarketMilk
  • 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
JPY Forex Pairs SMA from MarketMilk
JPY Forex Pairs SMA from MarketMilk
  • The yen saw the most volatility against the comdolls and the pound in the last seven days
JPY Forex Pairs Volatility from MarketMilk
JPY Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read JPY’s price recap for Aug. 31 – Sept. 4!