USD/JPY Support Near 108.85 Holds Bears From Gaining Momentum

USD/JPY – Technical Analysis for Forex Trading & CFDs.

Japan – Household Spending

Today, at GMT 11:30 p.m., the Japanese Statistics Bureau will release the year over year Household Spending figure, which measures the inflation adjusted value of all expenses by the Japanese consumers.

Forex investors consider the household consumer spending to be a leading indicator of a country’s economic health. This is because the amounts spent by consumers have a ripple effect on the overall economic activity in the country.

Last month, the year over year Japanese Household Spending figure decreased by 2.3% and the forecast for this month is currently set at an additional increase of 0.8%.

United States – Institute for Supply Management (ISM) Manufacturing PMI

On Friday, at GMT 2:00 p.m., the Institute for Supply Management will release its manufacturing PMI figure for the United States. The ISM’s US manufacturing PMI measures the level of a diffusion index based on a survey of 400 purchasing managers.

Purchasing managers in the United States are involved in the supply side of the economy. As most companies reduce their expenses and production based on their sales forecast, the survey of purchasing managers reveals the overall optimism of various companies in the country. Hence, Forex traders can easily figure out the sentiment regarding the economic condition in the country from the ISM manufacturing PMI readings.

Last month, the ISM manufacturing PMI for the United States came out at 56.3 and the forecast for this month is set at 56.5.

USD/JPY Forecast

Since the start of 2017, the USD/JPY price action mostly remained range bound between 108.85 and 114.30. Over the last few weeks, the USD/JPY turned bearish after forming a bearish outside bar on July 11, but once again found strong support near the 108.85 level. Although the pair penetrated below the 108.85 level several times in the last couple of weeks, it failed to close below this support level.

As the US ISM Manufacturing PMI reading is estimated to have a minor increase to 56.5, but the Japanese household spending is set to increase by an additional 0.8%, we believe it would set a bearish fundamental outlook for the USD/JPY this week. Therefore, if the USD/JPY closes below the 108.85 level, it would likely attract additional bearish momentum in the market.

Hence, Australian Forex traders should look out for trading opportunities below this major support level around 108.85.

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

LinkedIn Google+ 

Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

Leave a Comment

Risk Warning: Trading in Financial instruments always involves substantial risk of loss and it´s not recommended for all investors or traders ( visit ASIC’s consumer website at www.fido.gov.au for general guidance about investing).
Before deciding to trade foreign exchange you should carefully consider your investment objectives, your experience and risk propensity.
You need to know there is a chance that you can lost some or all of your initial investment therefore you should avoid to invest money that you cannot afford to lose. Read Full Disclaimer

About Us - Sitemap - Contact Us - Disclaimer- Terms & Conditions
DMCA.com Protection Status

© Copyright 2016. All Rights Reserved. Forex Trading.auz.net - Australia Forex Trading Brokers -
ForexTrading.auz.net is owned and operated by Clicking Media Ltd ( company registered in England and Wales, UK )
Australia Office : Level 33, Australia Square, 264 George Street, Sydney, NSW 2000, Australia .
X

Risk Warning: Trading in financial instruments always involves substantial risk of loss and can result in losses that exceed your initial deposit, and it's not suitable for all investors or traders. Read Full Disclaimer

¤