Japanese yen declined slightly after the PMI data from Japan. The USDJPY pair reached a low of 106.39 from the previous high of 106.65.
22 August 2019, OctaFX – The USDJPY pair declined slightly after the country released PMI data. The services PMI came in at 53.4, which was better than the expected 51.8. The manufacturing PMI rose slightly from 49.4 to 49.5. Later today, the market will receive the flash PMI data from Germany, France, and the overall European Union. This data will be released by IHS Markit.
Investors expect the German PMI to decline from 43.2 to 43.0 while the EU manufacturing PMI to ease from 46.5 to 46.3. Later on, the ECB will publish the minutes of the last meeting. From the United States, the manufacturing PMI is expected to increase slightly from 50.4 to 50.5.
USDJPY technical analysis
On the hourly chart below, the pair has been trading on an upward trend and is trading slightly above the 61.8% Fibonacci Retracement level.
The price is between the lower and the middle lines of the Bollinger Bands. The key point to watch will be the 106.40 level, which is an important support. If the pair moves below this price, it will likely continue moving lower.
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