In June, White House leaders announced “Operation Warp Speed,” which gives more tax dollars and technical support to companies developing five experimental COVID-19 vaccines to be fast-tracked through testing and then mass production after the development of the vaccine. But there is a lot of speculation that whether the vaccine will be affordable. The Trump administration is helping the nation’s economy to get better and corona virus cases are surging in more than half of the states, while there’s been little action in Congress on the one thing that actually could get things back to normal, ensuring an affordable COVID-19 vaccine that could curtail the spread of the diseases. Vaccination against corona virus creates a hope which favors the US market.

Speaking at Bloomberg event on Thursday, Goldman Sachs Chief Executive Officer (CEO) David Solomon said that he still sees a V-shaped recovery for the US economy this year.“Uncertainty still persists, as the secondary shocks could endanger recovery and seeing a sharp V to start with, but it’s very open-ended as to what kind of economic friction we’re going to see as we get through the end of the year and into 2021.”

President Trump on Tuesday rallied a crowd of largely maskless student supporters in Phoenix. Roughly 3,000 young attendees were expected to attend Tuesday’s event in Arizona.“We are going to be stronger than ever before, and it’s going to be soon,” Trump said of the corona virus, touting his “swift and early action” to ban travel from China at the beginning of February in order to prevent the spread of the disease.

Japanese data released at the beginning of the day was mixed since the May Corporate Service Price Index came in at 0.8% YoY, below the 1.1% expected, while the April Coincident Index was downwardly revised to 80.1 from 81.5. The Leading Economic Index for the same month, however, was revised to 77.7 from 76.2. All industry monthly report is 6.4% which is high compared to previous month 3.4%.

USD/JPY 4 Hours Chat:

Support: 106.60 (S1), 106.15 (S2), 105.91 (S3).

Resistance: 107.28 (R1), 107.52 (R2), 107.97 (R3).

Amidst many catalysts supporting the US economy, there remains a fear of the second wave of the virus. All Industries Activity monthly report of Japan did not impact the market. With the increasing strength of the dollar, we expect a bullish trend for USD/JPY.