USDJPY,  H1     

U.S. Markit manufacturing PMI dipped to 50.5 in flash print for May, the lowest since September 2009. The index fell to 50.8 in April from 51.5 in March. It was 54.0 a year ago. The index hit a high of 57.9 in August 2014 and has generally been on a downward trajectory ever since. New orders declined versus April and are expanding at the slowest rate since December 2015, in large part thanks to weakness from foreign demand. But, input prices rose for a second straight month, though inflation remained moderate overall and was running at a slower overall pace than the series average. The squeeze on US manufacturing continues with a strengthening USD, insipid global demand and the FED looking to hike interest rates, it’s not getting any easier. USDJPY trading above day lows at 109.40 but off the 110 handle by some way today.

Janne Muta

Chief Market Analyst

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USDJPY, H1   

US retail sales jumped 1.3% in April, and were up 0.8% excluding autos, much better than expected following a 0.3% headline decline in March, with the ex-auto component revised up to 0.4% from 0.2%. Excluding autos, gas, and building materials, sales climbed 0.8% versus a 0.1% gain previously (revised from flat). Auto sales bounced 3.2% to erase the 3.2% drop previously. Gasoline station sales increased 2.2% with back-to-back gains unwinding the 5.2% February decline. Non-store retailers increased 2.1%. Miscellaneous sales were up 1.5%. Clothing sales rebounded 1.0%. Health and personal care continued to post strong gains for a 3rd straight month, up 0.9% versus 1.3% previously.

 US April final demand PPI increased 0.2% with the core up 0.1%,  following March declines of 0.1% for both. On an annual basis, producer prices were flat (0.0%) versus -0.1% y/y previously, with the ex-food and energy component expanding 0.9% y/y after the 1.0% y/y gain in March. Inflation in the goods sector grew 0.2% in April after an identical 0.2% gain in March, with energy up 0.2% from 1.8% previously. Food prices fell -0.3% after the -0.9% decline in March. Inflation in the services sector rose 0.1% after an 0.2% decline.

Two good pieces of news for the US economy, (particularly the retail figure).  The USD and US stock market futures both up

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

USDJPY, 240 min

Earlier today the yen eked out fresh lows against the dollar and euro, among other currencies, in what has been generally lacklustre trade in Asia. A solid set of Chinese data failed to lift spirits in most Asian stock markets, with investors in need of a breather after a week of strong rallies. A major earthquake was reported to have hit Japan’s Kyushu island. It caused damage and very unfortunately deaths but hasn’t caused a tsunami. This morning’s Japanese industrial production numbers for February came in at -5.2% while the previous number was -6.2%. There was no immediate reaction to the number even though the JPY strengthened a little bit later on.

USDJPY has rallied from Monday’s low of 107.63 until the pair corrected lower today. It is now trading relatively near the 109.10 support which coincides with 23.6% Fibonacci level. I’m interested in the levels near the 50% Fibonacci retracement (at 110.72) for short entries as it coincides with 110.65 level that used to be an important support for the pair. The 50% level adds to this levels significance.

Should the pair rally to my sell area between 110.25 and 111.00 I will be looking for sell signals inside the sell area. The target 1 (T1) area is between 109.08 and 109.75 while those looking for a longer term target might choose to exit at target 2 between 104.75 and 105.50. I recommend using strict risk management as per usual. If you don’t know how to manage your trading risks professionally you are welcome join to my free webinars to learn more about it.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.