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.