The football character of the yen


On Friday, Japan showed such optimistic economic indicators for labor and inflation that today's weakness of Manufacturing PMI and Tankan indices was overcome.

The unemployment rate in May fell from 2.5% to 2.2%, which corresponds to April 1978 (40-year minimum!). The basic CPI in metropolitan Tokyo increased from 0.5% y / y to 0.7% y / y, with the expectation of a smaller increase to 0.6% y / y. The total CPI of Tokyo increased from 0.4% y / y to 0.6% y / y. Industrial production for May lost 0.2%, but the forecast was -1.1% and the previous growth was stronger: 0.5%. On Friday, the yen added 22 points.


Today, growth continued. On the daily chart, the price overcame the resistance of the upper boundary of the downward trend channel and now the goal is to resist the growing price channel in the 112.05 area. The intermediate goal of 111.64 is at least October 16, 2017. A forward target is the upper boundary of the channel 113.26.

We note that the price is steadily growing above the balance line (red) and Marlin in the zone of positive values.

The material has been provided by InstaForex Company -