USDJPY – Down
USDJPY trading plan:
Profits at China’s industrial firms sank in July, reversing previous gains as fresh COVID-19 curbs dragged down demand and squeezed factory margins, while power shortages due to heatwaves threatened production. Profits at China’s industrial firms fell 1.1% in January-July from a year earlier, wiping out the 1.0% growth logged during the first six months, the National Bureau of Statistics said. Factory production and activities in major manufacturing hubs like Shenzhen and Tianjin were hit in the month as fresh COVID curbs were imposed. In July, China’s industrial output growth slowed to 3.8% on-year from 3.9% in June. This is a bad signal for the stock market and USDJPY, which has a correlation with the shares.
Investment idea: sell 138.77 and take profit 138.00.
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