USDJPY forecast bearish despite Manufacturing PMI missing expectation
Technical Analysis Summary USD/JPY: Sell
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Sell | |
| Donchian Channel | Neutral | |
| MA(200) | Buy | |
| Fractals | Sell | |
| Parabolic SAR | Sell |
Chart Analysis
The USDJPY technical analysis of the price chart on 1-hour timeframe shows USDJPY: H1 is retreating toward the 200-period moving average MA(200) which is rising still. We believe the bearish momentum will continue after the price breaches below the lower bound of the Donchian channel at 144.05. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 144.59. After placing the order, the stop loss is to be moved to the next fractal high, following Parabolic indicator signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of -
Japan’s Manufacturing PMI declined in September. Will the USDJPY price rebound resume?
Japan’s Manufacturing PMI declined in September: Markit’s flash report showed Manufacturing PMI in Japan declined to 50.0 for September from 51.5 in August, when an decrease to 51.3 was forecast. Readings above 50.0 indicate industry expansion, below indicate contraction. This is bullish for USDJPY. However, the technical setup is bearish for USDJPY.