US economic data this week showed the world’s largest economy is in worse shape than most economists have predicted. Manufacturing and services sector data both clocked in worse than anticipated, ADP data showed a slump in private-sector hiring. The USDJPY started to reverse direction but remains well supported at current levels. How will price action react to today’s economic data out of the US? Today’s fundamental analysis will take a look at price action in both directions.

The Japanese Yen started to attract more demand as safe-haven seekers are rotating back into this currency. Despite much worse than expected global economic data, most forex traders are only focused on developments concerning the US-China trade talks. Clarity is absent and a skinny version of the phase-one trade deal may now be postponed until 2020. Will bulls attempt to keep the rally in the USDJPY alive or are bear waiting around the corner? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.