On Tuesday morning, USDJPY stopped falling, but demand for the Yen may revive very soon.
After yesterday’s recovery, the Japanese Yen is consolidating against the USD on Tuesday morning. The current quote for the instrument is 107.52.
In the morning, Japan reported on the Manufacturing PMI for September, which was only 48.9 points after being 49.3 points the month before and against the expected reading of 49.5 points. The last time the indicator surpassed 50 points, the level that separates optimists from pessimists, this May, but couldn’t fix above it.
The key reasons for the current slowdown are the decline of the global economy and the expansion of trade tensions. Everything is very simple: the export-oriented Japanese economy can’t operate at 100% with global trade wars around it.
The components of the report show that new order declined at a weaker pace with the export and import as well. All this proves that external factors are more significant than meets the eye.
The next meeting of the Bank of Japan is scheduled for October 31st, and the weak statistics may increase market expectations relating to the introduction of new stimulus measures.
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.