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Japanese data for September was weaker than expected. Tokyo Core CPI slowed to 0.5%, its weakest reading since May 2018. Manufacturing PMI slipped to 48.9, down from 49.5 in August.
In the U.S., this week’s hot topic was impeachment, as the Democrats initiated impeachment proceedings against President Trump, after a leaked phone call showed that Trump had discussed business dealings of Joe Biden, a presidential candidate, with the Ukrainian President. There were no surprises from third-estimate GDP for the second quarter, which came in at 2.0%. This confirmed the second estimate. This was significantly lower than the robust gain of 3.1% in the first quarter. Durable goods orders were better than expected – the headline reading came in at 0.2% and the core release posted a gain of 0.5%.
Updates:
We start with resistance at 111.62. 110.62 is next.
109.73, held in resistance since the end of May. 109.35 is close by.
108.70 follows.
108.10 is an immediate resistance line. It has weakened USD/JPY continues to gain ground.
107.30 is providing support.
106.61(mentioned last week) is next.
105.55 has held in support since late August.
104.65 has held firm since January. It is the final support line for now.
I am bullish on USD/JPY
The dollar continues to gain ground, as investor apprehensions over tensions in the Persian Gulf haven’t translated into gains for the safe-haven Japanese yen. The new sales tax could see consumer spending quickly drop, which does not bode well for the economy or the Japanese currency.
Further reading:
Safe trading!
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