Dollar Soars Against Yen, But Retreats Elsewhere
Action Insight Mid-Day Report 7-1-21

Dollar Soars Against Yen, But Retreats Elsewhere

Dollar surges sharply against Yen today and maintains gain after better than expected job data. Though, the greenback is retreating mildly against other major currencies, as traders are probably lightening up their positions first ahead of tomorrow's non-farm payrolls. Comments from ECB and BoE officials gave Euro and Sterling some support. But they're not enough to trigger a notable rebound. Meanwhile, commodity currencies turned mixed. European stock indexes are trading in slight black but US futures are mixed.

Technically, some focuses are turning back to Yen crosses. EUR/JPY would be eyeing 132.68 resistance against, and break could pave the way to retest 134.11 high. AUD/JPY also rebounds after hitting 82.79 and could be heading back to 84.24. Break will resume the rise from 82.11 for retesting 85.78 high. NZD/JPY looks even stronger and break of 78.46 will resume the rise from 76.20 for retesting 80.17 high.

In Europe, at the time of writing, FTSE is up 0.70%. DAX is up 0.17%. CAC is up 0.44%. Germany 10-year yield is up 0.0023 at -0.202. Earlier in Asia, Nikkei dropped -0.29%. Hong Kong and China were on holiday. Singapore Strait Times dropped -0.20%. Japan 10-year JGB yield dropped -0.0192 to 0.040.

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USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 110.65; (P) 110.88; (R1) 111.35; More...

Intraday bias in USD/JPY remains on the upside for 111.71 resistance. Sustained break there will carry larger bullish implication. Next target is 61.8% projection of 102.58 to 110.95 from 107.47 at 112.64. On the downside, break of 110.41 support is needed to indicate short term topping. Otherwise, outlook will stay bullish in case of retreat.

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EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
22:30 AUD AiG Performance of Mfg Index Jun 63.2 61.8
22:45 NZD Building Permits M/M May -2.80% 4.80% 5.10%
23:50 JPY Tankan Large Manufacturing Index Q2 14 15 5
23:50 JPY Tankan Large Manufacturing Outlook Q2 13 18 4
23:50 JPY Tankan Non - Manufacturing Index Q2 1 3 -1
23:50 JPY Tankan Non - Manufacturing Outlook Q2 3 8 -1
23:50 JPY Tankan Large All Industry Capex Q2 9.60% 7.20% 3.00%
00:30 JPY Manufacturing PMI Jun F 52.4 51.5 51.5
01:30 AUD Trade Balance (AUD) May 9.68B 10.50B 8.03B 8.16B
01:45 CNY Caixin Manufacturing PMI Jun 51.3 51.8 52
06:00 EUR Germany Retail Sales M/M May 4.20% 5.00% -5.50%
06:30 CHF Real Retail Sales Y/Y May 2.80% 35.70% 37.70%
06:30 CHF CPI M/M Jun 0.10% 0.20% 0.30%
06:30 CHF CPI Y/Y Jun 0.60% 0.70% 0.60%
07:30 CHF SVME PMI Jun 66.7 70.2 69.9
07:45 EUR Italy Manufacturing PMI Jun 62.2 62.2 62.3
07:50 EUR France Manufacturing PMI Jun F 59 58.6 58.6
07:55 EUR Germany Manufacturing PMI Jun F 65.1 64.9 64.9
08:00 EUR Italy Unemployment May 10.50% 10.70% 10.70%
08:00 EUR Eurozone Manufacturing PMI Jun F 63.4 63.1 63.1
08:30 GBP Manufacturing PMI Jun 63.9 64.2 64.2
09:00 EUR Eurozone Unemployment Rate May 7.90% 8.00% 8.00% 8.10%
11:30 USD Challenger Job Cuts Y/Y Jun -88.00% -93.80%
12:30 USD Initial Jobless Claims (Jun 25) 364K 382K 411K 415K
13:45 USD Manufacturing PMI Jun F 62.6 62.6
14:00 USD ISM Manufacturing PMI Jun 61.5 61.2
14:00 USD ISM Manufacturing Prices Paid Jun 89.8 88
14:00 USD ISM Manufacturing Employment Index Jun 50.9
14:00 USD Construction Spending M/M May 0.40% 0.20%
14:30 USD Natural Gas Storage 68B 55B