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USD/JPY – Yen Shrugs Off Weak Manufacturing Data

The Japanese yen has posted modest gains on Wednesday, as the pair flirts with the 102 line. On the release front, Japanese manufacturing numbers continue to have a dismal week, as BSI Manufacturing Index tumbled to a three-year low. Later in the day, we’ll get a look at Core Machinery Orders. In the US, there are no major releases on Wednesday. Today’s highlight is Crude Oil Inventories.

There was more good news on the US employment front, as JOLTS Job Openings jumped to 4.46 million, up sharply from 4.01 million a month earlier. This easily beat the estimate of 4.04 million, and comes on the heels of a positive Nonfarm Payrolls last week. We’ll get a look at Unemployment Claims on Thursday, with the markets expecting a slight improvement compared to the previous release.

Japanese manufacturing numbers have not impressed in May. BSI Manufacturing Index slumped to -13.9 points, surprising the markets that had estimated a gain of +14.1 points. This was the worst showing since May 2011. Earlier in the week, Tertiary Industry Activity posted a decline of 5.4%, its worst showing in three years. Preliminary Machine Tool Orders dipped to 24.1%, its weakest performance in 2014. There was much better news earlier in the week, as Final GDP soared 1.6% in Q1, a huge improvement from the weak gain of 0.2% in Q4. Current Account also looked sharp, posting a surplus for the first time since September. These strong numbers have reinforced the BOJ’s contention that the improving economy will be able to weather the sales tax hike which took effect in April.


USD/JPY for Wednesday, June 11, 2014

USD/JPY June 11 at 10:20 GMT

USD/JPY 102.06 H: 102.39 L: 102.02


USD/JPY Technical

S3 S2 S1 R1 R2 R3
99.57 100.00 101.19 102.53 103.07 104.17


Further levels in both directions:


OANDA’s Open Positions Ratio

USD/JPY ratio is almost unchanged on Wednesday. This is not consistent with the movement of the pair, as the yen has posted gains. The ratio continues to be made up of a majority of long positions, indicating trader bias towards the dollar reversing directions and moving upwards.

USD/JPY is trading just above the 102 line. Will it drop into 101 territory? The pair has lost ground in the European session.


USD/JPY Fundamentals

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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