We advise to sell USD/JPY | 03 July 2014

Euro

The employment data from the ADP agency was published the other day. This is a Non-Farm leading indicator. The Fed governor spoke in public. The recent positive reports from the real estate market confirm the U.S. recovery after the "holes" in the first quarter.

Nevertheless, the unemployed number increased by 9K, showing a growth for the second consecutive month. The researches have also shown that the labor market conditions remained fairly hard in June.

The support levels are 1.3630- 1.3650, and the resistance levels are 1.3700 - 1.3720.

MACD is in a positive territory.

Trading recommendations

The euro/dollar rally stopped at the 37th figure. The pair consolidated below this level. The demand remains and the euro may retest resistance at 1.3700-1.3720.

Pound

The construction sector published the index. We can expect the data release on the level of the forecasted medians, which together with a strong short-term technical pound/dollar overbought factor will serve as an obstacle for the quotations growth.

The published data showed that the business activity in the manufacturing sector grew in June to 57.5 pp above the average analyst forecast of 56.8 pp. The May figure also exceeded the value in 57.0. According to the Markit Company, Purchasing Managers Index (PMI) for the manufacturing rose to 57.5 in June; when it was assumed to be 56.7 after 57.0 in May.

The support levels are 1.7090 - 1.7110, and the resistance levels are 1.7170 - 1.7190.

MACD is in a positive territory.

Trading recommendations

The pair broke the Monday’s high mark and tested the resistance at 1.7166. The pound is approaching another strong resistance level in the area of 72nd figure.

Yen

The Japanese currency is back under the pressure and recorded a loss against the dollar. Tankan data activity indicator was little worried about the market; the main pressure factor was the risk appetite increase on the yen, noted on the stock markets, amid the good statistics on the Chinese economy.

The “Bulls”' return to the stock exchange that supports the demand for the dollar/yen. The positive trend continuation in the futures Nikkei 225 stock index cheered investors to open long positions on the U.S. currency. In this case, we can expect the dollar/yen return to 102nd figure.

The support levels: 101.50- 101.70, and the resistance levels: 102.00- 102.20.

The MACD indicator is in a neutral territory.

Trading recommendations

The support 101.20 testing risks are preserved. It opens the way to a break through of 100.68/00. The grotwth above 101.80 is needed to weaken the downward pressure.