USDJPY – Down
USDJPY trading plan:
China’s factory activity contracted for the first time in three months in August amid weakening demand, while power shortages and fresh COVID-19 flare-ups disrupted production, a private sector survey showed. The unexpectedly weak reading echoed China’s official PMI released, which was also below the 50-point mark that separates growth from contraction on a monthly basis. „The economy is still slowly recovering from a widespread outbreak of COVID-19 in the first half of the year. Yet, local flare-ups and the punishing heatwave have disrupted the trend and created new downward pressures, posing a threat to the recovery,“ said Wang Zhe, senior economist at Caixin Insight Group. This is a bad signal for the stock market and USDJPY, which has a correlation with the shares.
Investment idea: sell 139.50 and take profit 138.70.
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