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In Japan, the manufacturing sector continues to sputter. Manufacturing PMI was almost unchanged in October, with a reading of 48.6. The PMI has been in contraction territory since January.
Over in the U.S., policymakers said that the Fed would take a break from recent rate cuts unless there was a significant change in economic conditions. The rate cut in October was considered hawkish, as the Fed took pains to reassure investors that the U.S. economy was in good shape, despite the rate cut. The minutes noted that U.S. economic conditions were generally positive, with an outlook of moderate growth, a robust labor market and inflation close to the Fed’s target of 2 percent.
Updates:
We start with resistance at 112.25.
111.62 was last active in April. 110.62 is next.
109.73 has held in resistance since the end of May. 109.35 is close by.
108.70 is a weak resistance line. 108.10 is next.
107.30 (mentioned last week) switched to support in early October.
106.61 is next.
105.55 has held in support since late August. It is the final support level for now.
I am neutral on USD/JPY
The U.S. and China have failed to reach an agreement on ending their nasty trade war, with conflicting signals as to the amount of progress that has been made in the talks. The Japanese economy remains weak, and it will likely take a rise in risk apprehension in order for the yen to gain ground.
Further reading:
Safe trading!
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