USDJPY – Down
USDJPY trading plan:
China’s factory activity eked out growth in September, but a slowdown in services sector growth and a downbeat private manufacturing survey pointed to further cooling as the economy grapples with COVID-19 curbs and softening global demand. China’s official manufacturing purchasing managers‘ index rose to 50.1 in September from 49.4 in August, the National Bureau of Statistics said. The index’s return to growth, after two months of contraction, was helped by recent easing measures, but the private Caixin survey showed factory activity slumped more quickly in September and the official survey showed a sharp slowdown in services sector activity growth. Signs that the world’s second-largest economy is struggling to regain traction after narrowly avoiding contraction in the second quarter, could add to concerns about a global recession, as major central banks embark on the most aggressive round of rate rises in decades. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.
Investment idea: buy 114.05 and take profit 114.60.
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