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Forex - USD/JPY weekly outlook: July 7 - 11

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Shutterstock photo - - The dollar edged lower against the yen amid profit taking on Friday, but still ended the week higher as a better-than-expected U.S. nonfarm payrolls report for June bolstered the outlook for the wider economic recovery.

USD/JPY was at 102.05 late Friday, off Thursday's high of 102.25, but still 0.62% higher for the week.

The pair was likely to find support at 101.75, Thursday's low and resistance at 102.25.

The Labor Department reported that that U.S. economy added 288,000 jobs last month, well above expectations for jobs growth of 212,000. The previous month's figure was revisedup to a gain of 224,000 from a previously reported increase of 217,000.

The unemployment rate ticked down to 6.1% from 6.3% in May, the lowest in almost six years. The data was released a day early, ahead of the Independence Day holiday on Friday.

The upbeat data revived speculation over when the Federal Reserve may start to raise interest rates.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was at 80.31 late Friday, recovering from the two-month lows of 79.84 reached earlier in the week.

Elsewhere Friday, the euro slipped lower against the yen, with EUR/JPY down 0.24% to 138.74, off Thursday's one-month highs of 139.26.

The euro came under pressure after the European Central Bank reiterated that it could use "unconventional measures" to combat persistently low levels of inflation in the euro area.

The ECB left all rates on hold on Thursday, in a widely anticipated decision, after cutting rates to record lows in June.

In the week ahead, investors will be focusing on Wednesdays' minutes of the Federal Reserve's June meeting, with few other major economic reports on the calendar.

Ahead of the coming week, has compiled a list of this and other significant events likely to affect the markets. The guide skips Monday and Friday as there are no relevant events on these days.

Tuesday, July 8

Japan is to release a report on the current account.

Wednesday, July 9

The Federal Reserve is to publish the minutes of its June meeting.

Thursday, July 10

Japan is to publish core machinery orders and tertiary industry activity.

The U.S. is to release the weekly government report on initial jobless claims. offers an extensive set of professional tools for the financial markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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