Japan’s GDP data is crucial, with USD/JPY likely driven by Chinese and US retail sales.

The USD/JPY exchange rate rose 0.43% on Monday, reaching 145.549. Japan’s GDP figures may impact the BoJ’s ultra-accommodative monetary policy, with a 0.8% growth forecast for the second quarter.

Central bank watchfulness is crucial for strong economic development, but inflation remains the main macroeconomic focus, limiting its influence on short-term monetary policy objectives and the Yen.
To prevent risk aversion, China’s economic statistics must surpass expectations, with retail sales and industrial production figures expected to be more significant.

To prevent risk aversion, China’s economic statistics must surpass expectations, with retail sales and industrial production figures expected to be more significant.

Risk perception is influenced by China’s economic data, with China and the US being the top importers of Japanese goods.

US Session retail sales and NY Empire State Manufacturing Index will influence the dial, according to our opinion.

Retail sales are expected to rise 0.4% in July, up from 0.2% in June, according to economists. The Fed may raise interest rates in order to decrease spending and prevent inflation. Higher-than-expected US retail sales reflect contrasts in economic and monetary policies between the US and Japanese economies.
The New York State statistics is unlikely to have an impact on the Fed, as the manufacturing sector accounts for less than 30% of US GDP.

Daily graph
USD/JPY remained above resistance at 144.3–145.0, maintaining above 50-day and 200-day EMAs, indicating optimistic short-term and long-term price signals.

The 14-day RSI reading of 66.97 signals bullish emotion, supporting a run towards 146. Bears may consider sub-144 if USD/JPY falls below resistance range.



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