Source: PaxForex Premium Analytics Portal, Technical Insight

Japan's economy minister, Y. Nishimura said the national economy is showing signs of recovery:

• Revision to reduce capital expenditures has worsened the situation in the corporate profits segment and increased uncertainty about forecasts;

• Corporate spending indicators are showing signs of adaptation to a "new lifestyle";

• Household income is growing, so the economy should continue recovery.

These positive comments were made shortly after the release of depressing data on Japan's GDP, which reflected a 28.1% contraction in the economy in the 2nd quarter against a preliminary estimate of 27.8%.

USD/JPY, 30 min

Pivot: 106.26

Analysis:

Provided that the currency pair is traded above 106.10 follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 106.26
• Take Profit 1: 106.40
• Take Profit 2: 106.55

Alternative scenario: 

In case of breakdown of the level 106.10, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 106.10
• Take Profit 1: 105.95
• Take Profit 2: 105.80

Comment:

Technically RSI shows the possibility of an uptrend during the day. 

Key levels:

USD/JPY, D1

Pivot: 106.01

Analysis:

While the price is below 108.15, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 106.24
• Take Profit 1: 104.15
• Take Profit 2: 102.40

Alternative scenario:

If the level 108.15 is broken-out, follow the recommendations below.

• Time frame: D1
• Recommendation: long position
• Entry point: 108.15
• Take Profit 1: 109.65
• Take Profit 2: 111.20

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 – sell below 1.1830 with 1.1790 and 1.1780 as Take Profit targets. Alternative scenario - if the level of 1.1830 is broken-out, you should consider buying with the targets 1.1850 and 1.1865 as Take Profit.
GBP/USD - short positions below 1.3195 with 1.3100 and 1.3060 targets as Take Profit. Alternative scenario - if the level of 1.3195 is broken-out, buy with the targets 1.3235 and 1.3270 as Take Profit.
USD/CHF - buy above 0.9140 with 0.9200 and 0.9220 targets as Take Profit. Alternative scenario - if the level 0.9140 is broken-down, sell with the TP 0.9120 and 0.9100.