USDJPY's Breakout and Economic Indicators
Greetings Traders,
In today's trading session, our focus shifts to USDJPY, where we are actively monitoring a potential selling opportunity around the 144.600 zone. After trading in an uptrend, USDJPY has experienced a significant breakout to the downside. The currency pair is currently navigating a correction phase, steadily approaching the critical retrace area at the 144.600 support and resistance zone.
A deeper analysis involves considering recent economic indicators. The Federal Open Market Committee (FOMC) and Consumer Price Index (CPI) data play pivotal roles in understanding the broader economic landscape. The most recent FOMC meeting revealed a dovish stance, with an emphasis on supporting economic recovery. Additionally, the CPI figures highlight inflation easing, contributing to the cautious approach of the central bank.
Moreover, the latest Institute for Supply Management (ISM) figures underscore the challenges faced by the U.S. manufacturing sector, with the index slipping to 50.6, below both the forecasted 52.5 and the previous 52.7. This unexpected downturn in manufacturing adds a layer of complexity to USDJPY's correction phase, potentially furthering the weakening of the U.S. dollar.
As USDJPY hovers around the 144.600 level, traders should exercise vigilance and consider the broader economic context when making trading decisions. The confluence of technical and fundamental factors enhances the significance of this monitoring session, urging traders to remain adaptable to evolving market conditions.
Trade safe,
Joe.
In today's trading session, our focus shifts to USDJPY, where we are actively monitoring a potential selling opportunity around the 144.600 zone. After trading in an uptrend, USDJPY has experienced a significant breakout to the downside. The currency pair is currently navigating a correction phase, steadily approaching the critical retrace area at the 144.600 support and resistance zone.
A deeper analysis involves considering recent economic indicators. The Federal Open Market Committee (FOMC) and Consumer Price Index (CPI) data play pivotal roles in understanding the broader economic landscape. The most recent FOMC meeting revealed a dovish stance, with an emphasis on supporting economic recovery. Additionally, the CPI figures highlight inflation easing, contributing to the cautious approach of the central bank.
Moreover, the latest Institute for Supply Management (ISM) figures underscore the challenges faced by the U.S. manufacturing sector, with the index slipping to 50.6, below both the forecasted 52.5 and the previous 52.7. This unexpected downturn in manufacturing adds a layer of complexity to USDJPY's correction phase, potentially furthering the weakening of the U.S. dollar.
As USDJPY hovers around the 144.600 level, traders should exercise vigilance and consider the broader economic context when making trading decisions. The confluence of technical and fundamental factors enhances the significance of this monitoring session, urging traders to remain adaptable to evolving market conditions.
Trade safe,
Joe.
Comment:
Decent retrace of the trendline!
Comment:
Market is open, we had weak ISM Figures that came below expectations and triggered some USD weakness. looking towards CPI this week to get further confirmations for more USD bears. If we get a soft CPI then it should be very decent for the bearish scenario.
Join our telegram Channel for daily market updates t.me/JoeChampion