All eyes will be on today’s US ISM Non-Manufacturing Index after the ISM Manufacturing Index showed the worst reading in ten years. The US Dollar has maintained its bullish stance against the Japanese Yen, how much longer will this trend last? Forex traders will also get factory orders which are expected to show a contraction, how will this impact the USDJPY which currently tests support? Today’s fundamental analysis will take a look at the downside potential and the upside risk in this currency pair.
Final Japanese PMI data confirmed the initial reading, but the Japanese Yen was able to advance slightly as forex traders are reducing their risk and seeking save haven currencies. As the USDJPY is trading at support, will US data force a sell-off? The Bank of Japan is monitoring the strength of the Japanese Yen as it is hurting its struggling export sector. How much weaker will it allow to get before stepping in? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
Here are the key factors to keep in mind today for US Dollar trades:
- US Initial Jobless Claims and Continuing Claims: US Initial Jobless Claims for the week of September 28th are predicted at 215K and US Continuing Claims for the week of September 21st are predicted at 1,654K. Forex traders can compare this to US Initial Jobless Claims for the week of September 21st which were reported at 213K and to US Continuing Claims for the week of September 14th which were reported at 1,650K.
- US Markit Services PMI and Markit Composite PMI: The US Final Markit Services PMI for September is predicted at 50.9 and the US Final Markit Composite PMI is predicted at 51.0. Forex traders can compare this to the previous US Markit Services PMI for September which was reported at 50.9 and to the previous US Markit Composite PMI which was reported at 51.0.
- US ISM Non-Manufacturing PMI: US ISM Non-Manufacturing PMI for September is predicted at 55.0. Forex traders can compare this to the US ISM Non-Manufacturing PMI for August which was reported at 56.4. The ISM Non-Manufacturing Business Activity Index for September is predicted at 59.0. Forex traders can compare this to the ISM Non-Manufacturing Business Activity Index for August which was reported at 61.5.
- US Factory Orders: US Factory Orders for August are predicted to decrease by 0.2% monthly. Forex traders can compare this to US Factory Orders for July which increased by 1.4% monthly.
Here are the key factors to keep in mind today for Japanese Yen trades:
- Japanese Buying Foreign Bonds and Japanese Buying Foreign Stocks/Foreign Buying Japanese Bonds and Foreigners Buying Japanese Stocks: Japanese Buying Foreign Bonds for the period ending September 27th was reported at ¥869.2B and Japanese Buying Foreign Stocks was reported at ¥320.9B. Forex traders can compare this to Japanese Buying Foreign Bonds for the period ending September 20th which was reported at -¥164.8B and to Japanese Buying Foreign Stocks which was reported at -¥106.3B. Foreign Buying Japanese Bonds for the period ending September 27th was reported at ¥400.4B and Foreigners Buying Japanese Stocks was reported at -¥221.2B. Forex traders can compare this to Foreign Buying Japanese Bonds for the period ending September 20th which was reported at -¥3,148.6B and to Foreigners Buying Japanese Stocks which was reported at -¥1,178.0B.
- Japanese Jibun Bank Services PMI and Composite PMI: The final Japanese Jibun Bank Services PMI for September was reported at 52.8. Forex traders can compare this to the previous Japanese Jibun Bank Services PMI for for September which was reported at 52.8. The Final Japanese Jibun Bank Composite PMI for September was reported at 51.5. Forex traders can compare this to the previous Japanese Jibun Bank Composite PMI for for September which was reported at 51.5.
Should price action for the USDJPY remain inside the or breakdown below the 106.700 to 107.300 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 107.100
- Take Profit Zone: 104.450 – 105.050
- Stop Loss Level: 107.750
Should price action for the USDJPY breakout above 107.300 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 107.750
- Take Profit Zone: 108.450 – 109.300
- Stop Loss Level: 107.300
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Is your forex investment enjoying over 5,000 pips in monthly profits? Join PaxForex today and trade the difference!
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
