USD/JPY: Japanese economy shows weakness again
Current trend
The USD/JPY pair shows an upward trend, trading around 115.67.
The Japanese currency began to fall in price after publishing key business activity indices for February: Manufacturing PMI fell to 52.7 points from 55.4 points a month earlier. Service PMI fell to 44.2 points from 47.6 points in January. Thus, the values are adjusted for the fifth month in a row and are at the level of September 2021, when pressure on the economy was due to the epidemic of the Delta strain of coronavirus. The Household Confidence Index dropped significantly, amounting to 35.3 points, down from 36.7 points in January.
Quotes of the American currency remain at the highs of the year after the head of the US Federal Reserve, Jerome Powell, announced an almost guaranteed rate hike by 25 basis points already at the next meeting on March 15. The official did not rule out a further increase in the rate at subsequent meetings. However, the head of the regulator decided to evade the statement about their number planned for the year. Additional support for the US currency was provided by data on employment in the US non-farm sector: the figure amounted to 475K, which exceeds the analysts' forecast of 378K jobs.
Support and resistance
The asset is corrected within the rising global channel, approaching the resistance line. Technical indicators keep a buy signal: fast EMAs on the Alligator indicator crossed the signal line upwards again, and the AO oscillator histogram forms new upwards bars.
Resistance levels: 116.03, 117.00.
Support levels: 114.83, 112.82.
The USD/JPY pair shows an upward trend, trading around 115.67.
The Japanese currency began to fall in price after publishing key business activity indices for February: Manufacturing PMI fell to 52.7 points from 55.4 points a month earlier. Service PMI fell to 44.2 points from 47.6 points in January. Thus, the values are adjusted for the fifth month in a row and are at the level of September 2021, when pressure on the economy was due to the epidemic of the Delta strain of coronavirus. The Household Confidence Index dropped significantly, amounting to 35.3 points, down from 36.7 points in January.
Quotes of the American currency remain at the highs of the year after the head of the US Federal Reserve, Jerome Powell, announced an almost guaranteed rate hike by 25 basis points already at the next meeting on March 15. The official did not rule out a further increase in the rate at subsequent meetings. However, the head of the regulator decided to evade the statement about their number planned for the year. Additional support for the US currency was provided by data on employment in the US non-farm sector: the figure amounted to 475K, which exceeds the analysts' forecast of 378K jobs.
Support and resistance
The asset is corrected within the rising global channel, approaching the resistance line. Technical indicators keep a buy signal: fast EMAs on the Alligator indicator crossed the signal line upwards again, and the AO oscillator histogram forms new upwards bars.
Resistance levels: 116.03, 117.00.
Support levels: 114.83, 112.82.
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