Manufacturing sector of Japan has shown minor rise of business activity in June. Analysts name several factors that have extremely negative influence on Japanese manufacturing sector.
Business activity index for manufacturing sector has risen to 47.8 points in comparison to 47.7 points in May. Actual value of the index has proved worse than predicted, for it had been expected to rise to 48.2 points.
PMI index makes a preliminary assessment for Japanese manufacturing sector; it also speaks about economy in general. If the value of the index is less than 50 points, it indicates slowdown in the sector and has negative influence on national currency.
Experts believe that conditions in manufacturing sector of Japan keep getting worse, which is proved by June PMI. Smaller global demand has lead to lowering such index’s constituents as "new orders" and "production". Another factor that makes Japanese manufacturing sector weaker is earthquakes, which happened in April. Growth of uncertainty caused by implementation of negative quotations may also have negative influence on production.
Japanese yen is within correction to long-term trend for strengthening against American dollar. USD/JPY pair is forming a “bearish” wave 3/C of not less than Weekly3 level, as believed by experts of Masterforex-V Trading System . As of 23 June 2016 the currency pair is within probable sub-wave b(С) of downtrend. The pair will continue current wave when a minimal point 103.54 is broken. Closest support is provided by Fibonacci levels 101.68/29, 100.72/52, and 98.66. Breakout of pivot MF 111.34 and line of descending sloping channel MF will show the end of current wave.
