The EUR/USD is forming a correction wave
The bullish American rival easily suppresses all the customers' expectations for the euro. The Investors anticipate the positive United States July employment changes data which may be another economic growth confirmation. It is expected that by the end June the employees number was increased by 230,000, which is less than the growth of 288.000. If data releases in accordance with the analysts' expectations, the dollar will keep the impulse recovery and further will offload risky assets.
The pair remains under the pressure and may continue the downward breakout in the direction of the support around of 1.3300. However, it is still heavily oversold.
The trend reversal up is possible from any level on the way to 1.3300 and the pair is likely to try to overcome the 1.3480-1.3500 area which can serve now as the resistance and continue to grow to the 1.3700 resistance direction.
The Markit Economics will publish the manufacturing sector PMI. The positive release may cheer the "bulls" to open the long positions and we will see the quotations restoration to the resistance level of 1.6920.
The pair has been fixed below of 1.6920-1.6970 support. The breakthrough and consolidation below this moving median will allow testing the 1.6690 support. The deeper correction still looks unlikely and it is very likely to reverse the trend upwards on the way to 1.6690.
There are rumors that the BoJ plans new injections to the economy. We do not believe these rumors are true as the previous "experiment" to weaken the yen did not give the positive result. Formally, it is possible to increase exports, but due to the rapid devaluation it did not bring any additional revenues to the budget. That is why the yen from the end of January was held in a narrow range of 101.20-103.00 in order the real sector and budget accustom to the new corridor.
In the local case, we see the USD/JPY synchronization growth with the general course on the dollar strengthening, so we expect the growth continuation amid the expected good American data that will be published this week. The target is 103.30.
Ruban SergeyAnalyst of «FreshForex» company
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