Key Points
- The US Dollar after trading towards the 100.10 support against the Japanese yen found support.
- The USDJPY pair is currently following an ascending channel pattern on the hourly chart.
- Today in Japan, the Nikkei Manufacturing PMI was released, which posted a rise from 49.5 to 50.3 in Sep 2016.
- The Japanese yen gained a few bids after the release, and challenging the Dollar buyers.
USDJPY Technical Analysis
The US Dollar recently managed to recover after testing the 100.10 support zone versus the Japanese yen. There was a nice upside move in the USDJPY pair, and it created an ascending channel pattern on the hourly chart.
The pair is finding it tough to hold the pattern, and testing the lower support area and the 21 hourly simple moving average.
A break below the channel support area may call for a move towards the last swing low of 100.00.
Nikkei Manufacturing PMI
Today in Japan, the Nikkei Manufacturing PMI, which gives an early snapshot of the health of the manufacturing sector in Japan and is a significant indicator of business conditions and the overall economic condition was released.
The forecast was lined up for a contraction, but there was an expansion with a reading of 50.3 in Sep 2016 (preliminary). Commenting on the report, an economist at IHS Markit who compiles the survey, Amy Brownbill, stated “Manufacturing conditions in Japan improved for the first time since February at the end of Q3. Production increased for the second month running, while international demand picked up for the first time since the start of 2016”.
Overall, the report was positive, and helping the Japanese yen. So, there is a chance of a downside break in the USDJPY pair moving ahead.
