USDJPY – Down
USDJPY trading plan:
U.S. manufacturing activity slowed more than expected in June, with a measure of new orders contracting for the first time in two years, signs that the economy was cooling amid aggressive monetary policy tightening by the Federal Reserve. The slowdown in manufacturing followed moderate consumer spending growth in May along with weak housing starts, building permits and factory production, which left some economists anticipating that the economy contracted again in the second quarter following a slump in gross domestic product in the first three months of the year. Another decline in GDP would not necessarily indicate a recession unless the economy suffers deep job losses. The ISM survey’s forward-looking new orders sub-index dropped to 49.2 from a reading of 55.1 in May. Some economists said the decline, the first below the 50 level since May 2020, reflected companies‘ adjusting their orders to current demand conditions after over-ordering because of strained supply chains.
Investment idea: sell 135.77 and take profit 134.95.
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