Source: PaxForex Premium Analytics Portal, Technical Insight

US capacity in Q3:

• before +10.1% (assumed to +10.6%);

• unit labour costs -8.9% vs. the forecast. -11.0%;

• previous unit labor costs of +9.0% (cfm to +8.5%).

The change in labor costs is because low-paid workers who were dismissed during quarantine in Q2 returned to work, so the composition of the workforce changed. Quarantine and reopening make it impossible to separate the signal and noise in this data series.

USD/JPY, 30 min

Pivot: 103.54

Analysis:

Provided that the currency pair is traded below 103.70, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 103.54
• Take Profit 1: 103.20
• Take Profit 2: 103.00

Alternative scenario: 

In case of breakout of the level 103.70, follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 103.70
• Take Profit 1: 103.95
• Take Profit 2: 104.20

Comment:

Technically RSI shows the possibility of a downtrend during the day. 

Key levels:

USD/JPY, D1

Pivot: 103.64

Analysis:

While the price is below 105.65, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 103.64
• Take Profit 1: 103.00
• Take Profit 2: 101.15

Alternative scenario:

If the level 105.65 is broken-out, follow the recommendations below.

• Time frame: D1
• Recommendation: long position
• Entry point: 105.65
• Take Profit 1: 106.15
• Take Profit 2: 106.90

Comment:

RSI shows a medium-term downtrend.

Key levels:

We also advise you to pay attention to the following currency pairs for intraday trading:

EUR/USD – buy above 1.1795 with 1.1850 and 1.1880 as Take Profit targets. Alternative scenario - if the level of 1.1795 is broken-down, you should consider selling with the targets 1.1770 and 1.1735 as Take Profit.
GBP/USD - long positions above 1.3095 with 1.3165 and 1.3200 targets as Take Profit. Alternative scenario - if the level of 1.3095 is broken-down, sell with the targets 1.3060 and 1.3030 as Take Profit.
USD/CHF - sell below 0.9065 with 0.9025 and 0.9000 targets as Take Profit. Alternative scenario - if the level 0.9065 is broken-out, buy with the TP 0.9085 and 0.9100.