Japanese economic data this morning came in mixed as retail sales disappointed with a bigger than expected contraction and vehicle production contracted in July. On the bright side, July industrial production rebounded as the jobless rate decreased and new construction orders surged. The Japanese Yen was able to advance slightly after the release of the data which kept the USDJPY hovering just below resistance levels. Will safe haven traders push the Japanese Yen higher heading into the weekend, filled with an uncertain speech by President Xi on the 70th Anniversary of the People’s Republic of China which could highlight the Chinese stance in the trade war with the US? Subscribe to the PaxForex Daily Fundamental Analysis where you can grow your balance trade-by-trade!

The US Dollar is likely to witness a rise in trading volume after the release of key personal income and spending data. Despite the slowing economy and the raging trade war, the US consumer borrowed money and supported the economy. How further can this trend extend? The Chicago PMI reading is also expected to have an impact on price action as it is expected to remain in contractionary territory. Forex traders will also get the final reading on US consumer confidence for August. How will this set of economic data impact the USDJPY? Today’s fundamental analysis will cover both sides of potential price action moves.