Japanese Manufacturing PMI was released on Monday. The fact was a little bit better than the forecast. The actual data is 49,8 against the forecast 49,6.
The index is around its crucial 50 level, but still below it, which means that the situation in the economy is close to a recession.
American ISM manufacturing PMI changed negatively too. The fact for May was released at 52,1. The situation got worse with production, inventories, supplier deliveries and backlog. But the index is still above 50.
The dollar could be under pressure on the news that FOMC is going to decrease the interest rate. This week the most important ratios are published on Friday. NFP and unemployment rate are released.
Technical analysis
On daily time frame USD/JPY tested the support level 107,840. USD broke the trend line up and it is approaching the 23,6% Fibo correction level. If it breaks this level 108,336 next target is 108,640. The indicators are reversing, MACD lines are moving up. Parabolic SAR changed its direction. Williams %R broke the lower line.
Summary: it is possible to think of longs if the pair breaks the level 108,336. In this case the pair will move further.
The index is around its crucial 50 level, but still below it, which means that the situation in the economy is close to a recession.
American ISM manufacturing PMI changed negatively too. The fact for May was released at 52,1. The situation got worse with production, inventories, supplier deliveries and backlog. But the index is still above 50.
The dollar could be under pressure on the news that FOMC is going to decrease the interest rate. This week the most important ratios are published on Friday. NFP and unemployment rate are released.
Technical analysis
On daily time frame USD/JPY tested the support level 107,840. USD broke the trend line up and it is approaching the 23,6% Fibo correction level. If it breaks this level 108,336 next target is 108,640. The indicators are reversing, MACD lines are moving up. Parabolic SAR changed its direction. Williams %R broke the lower line.
Summary: it is possible to think of longs if the pair breaks the level 108,336. In this case the pair will move further.