April 1, OctaFX – The US dollar has opened the new trading month with a slight bullish bias against the Japanese yen currency after the Chinese economy posted better than expected manufacturing data.
In the first quarter, the Tankan large manufacturers index declined to 12 from the previous 19. Similarly, the large non-manufacturers index declined to 21 from the previous 24.
These numbers rate the relative level of general conditions in the two sectors and this year, they have been on a downward trajectory. The large manufacturer’s index peaked in the fourth quarter of 2017 when it reached 25.
USDJPY technical outlook: Pair has a strong bullish intraday bias
The USDJPY pair rose after the weak economic numbers from Japan. It reached a high of 111.13, which was the highest level since March 20. On the hourly chart below, the pair is slightly lower than the upper line of the Bollinger Bands while the RSI has dropped slightly from the overbought level.
It is also in the third phase of the impulse Elliot Wave, which is a sign that it could decline slightly to the 50% Fibonacci Retracement level before continuing the upward trend.
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