USD/JPY has posted considerable gains in the Monday session, continuing the upward trend seen on Friday. In North American trade, the pair is trading at 109.95, up 0.41% on the day. It’s a quiet day on the release front, with no major indicators. On Tuesday, the key event is ISM Non-manufacturing PMI.
Japanese manufacturing PMI slipped to 50.3 in January, down from 52.6 points a month earlier. This was the weakest score since August 2016 and points to stagnation in the manufacturing sector. The ongoing global trade war has taken a toll on Japanese exports, which is turn has dampened the manufacturing industry. The U.S-China trade spat has been the catalyst behind the global trade war, and investors are cautiously optimistic that negotiations between the sides will continue and that a threat by the U.S. to impose further sanctions on March 1 will be avoided.
In the U.S., the week ended with mixed employment numbers. The economy created 304 thousand jobs, crushing the estimate of 165 thousand. This was the second score above the 300-thousand mark for a second successive month. However, wage growth was a disappointment, dropping from 0.4% to 0.1%. This fell shy of the estimate of 0.3% and marked the weakest reading since April 2018.
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USD/JPY Fundamentals
Sunday (February 3)
- 18:50 Japanese Monetary Base. Estimate 4.6%. Actual 4.7%
Monday (February 4)
- 15:00 US Factory Orders. Estimate 0.3%.
- Tentative – US Loan Officer Survey
Tuesday (February 5)
- 15:00 US ISM Non-Manufacturing PMI. Estimate 57.0
*All release times are EST
*Key events are in bold
USD/JPY for Monday, February 4, 2019
USD/JPY February 4 at 9:00 EST
Open: 109.51 High: 109.96 Low: 109.43 Close: 110.05
USD/JPY Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 107.36 | 108.11 | 109.37 | 110.28 | 110.90 | 112.16 |
USD/JPY posted small gains in the Asian and European sessions. This trend has continued in the North American session
- 109.37 is providing support
- 110.28 is the next resistance line
- Current range: 109.37 to 110.28
Further levels in both directions:
- Below: 109.37, 108.11, 107.36 and 106.62
- Above: 110.28, 110.90 and 112.16
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