Main Scenario: Below the 121,390 level, our expectation is NEGATIVE!
Target Expectation: 120,875 – 120,557 – 120,040
Considerations Supporting The Scenario: The green trend line and the Fibonacci 61.8% ratio cross over the 121.39 level and EURJPY supported the negative expectation by putting an end to reaction reception from this level in theory. Also the RSI indicator strengthened the negative outlook of the EURJPY with a 70-level return.
Alternative Scenario: With a 4-hour close above 121,390, our alternative expectations are POSITIVE!
Alternative Target Expectation: 121,700 – 121,960 – 122,220
Critical News of the Week:
- Japan’s Central Bank Interest Rate Decision and Governor Kuroda’s Speech,
- July Consumer Price Index data from Germany,
- Economic Confidence Index data from Turkey,
- Core Personal Consumption Expenses Price Index, Conference Board (CB) Consumer Confidence and Suspended House Sales data from the US.
- Manufacturing Purchasing Managers Index data from China,
- Central Bank of Turkey Inflation Report and Monetary Policy Meeting Summary Report from Turkey,
- Euro Area Consumer Price Index and Gross Domestic Product data for July,
- US ADP Non-Farm Employment Change and Chicago Purchasing Managers Index data, FOMC minutes and US Federal Reserve (Fed) Governor Powell’s Speech.
- From Euro Zone, Manufacturing Purchasing Managers Index data from France and Germany,
- Manufacturing Purchasing Managers Index data from the UK, Bank of England (BoE) meeting and BoE President Carney’s Inflation Report Presentation,
- Applications for unemployment benefits and ISM Manufacturing Purchasing Managers Index data from US.
- Producer Price Index and retail sales data from the Euro zone,
- Data from Non-Farm Employment, Average Hourly Earnings, unemployment rate, Michigan Consumer Sentiment and factory orders from the United States.