The Yen is starting a correction. Overview for 24.03.2017

24.03.2017

On Friday, the USD/JPY pair is trading to the upside after ten consecutive trading sessions of decline.

The Japanese Yen is starting a correction after strengthening against the USD for ten trading sessions in a row. The current quote for the instrument is 111.30. Yesterday, the pair fell into the area of lows reached on November 22nd 2016.

Today’s statistics showed that the Flash Manufacturing PMI in Japan fell from 53.3 point in February to 52.6 points in March, although it was expected to increase up to 53.5 points. The decline is rather uncomfortable, but not critical: the indicator is way above 50 points, psychologically-crucial level, which separates the decline for the growth.

Consequently, the manufacturing sector continues to expand, but a bit slower than earlier. The components of the report indicate that almost all readings are improving, but not as fast as before. Japanese authorities can be pretty enthusiastic when it comes to New Orders, because the indicator has been increasing.

Quite significant strengthening of the Yen recently may later affect basic macroeconomic indicators, but the national currency is unlikely to get stronger steadily.

 

RoboForex Analytical Department

 

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.