USD/JPY May Break Below Key Support if Japanese Flash Manufacturing PMI Improves

Japan – Flash Manufacturing PMI

On Thursday, at GMT 12:30 a.m., the Markit will release the Japanese Flash Manufacturing PMI data. It measures the level of a diffusion index based on surveying around 500 purchasing managers in the country.

Binary options traders consider the Flash Manufacturing PMI figure to be a leading indicator of the Japanese economic climate. Because purchasing managers usually has the insight regarding business conditions such as employment, production capacity and new bulk orders and inventory situation.

Last month, the Japanese Flash Manufacturing PMI figure came out at 54.1. The forecast for this month is currently set at 54.3.

United States – Core Durable Goods Orders

On Friday, at GMT 12:30 p.m., the US Census Bureau will release the month-over-month core durable goods orders figure. It measures the changes in the total value of all new purchase orders made to the US manufacturers for durable goods over the past month. However, the US Census Bureau excludes goods from the transportation sector in this figure in order to offer an accurate picture.

Binary options investors consider the US core durable goods orders to be the primary gauge of production situation in the economy. It is because an increase in purchase orders indicates that US manufacturing activity and growth will happen in the near future.

Last month, the US core durable goods orders decreased by -0.3%. Analysts are expecting it to increase by 0.4% this month.

USD/JPY Forecast

The USD/JPY broke below the uptrend line on January 10. Since then, the pair fell by around 700 pips over the last three months. However, after reaching the 105.50 level, the USD/JPY found a strong support in the middle of February. Since February 16, the pair remained range bound and failed to close below the support near the 105.50 level.

The Japanese Flash Manufacturing PMI reading might go up from 54.1 to 54.3 this month. On the other hand, analysts are expecting the Core Durable Goods Orders in the United States to increase by 0.4% this month as well. However, given the current trend, the Japanese manufacturing sector is more important. We believe it would set a bearish fundamental outlook for the USD/JPY this week. Therefore, if the USD/JPY closes below the support near 105.50, it would likely attract additional bearish momentum in the market.

Hence, US binary options traders should look out for trading opportunities below this major support level around 105.50.

BTC/USD Forecast

Since breaking above the downtrend line on February 12, the BTC/USD remained mostly range bound. Over the last month, bitcoin price fluctuated between the support around 7,520 and the resistance around 12,000.

On Sunday, an international group of central bankers and government ministers commented cryptocurrencies don’t pose a risk to global financial stability. Meanwhile a Wall Street analyst called Tom Lee published a report predicting bitcoin price reaching 91,000 by 2020. These two positive news seem to have a bullish effect on the BTC/USD price as it formed a bullish pin bar on March 18. We believe the bullish momentum will continue for the next few days.

Hence, US bitcoin traders should look out for trading opportunities at the market price, as long as it is trading below the resistance around 12,000.

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