According to the preliminary report on the Japanese Industrial PMI published by Markit Economics, the Purchasing Managers Index increased from July’s 49.3 points all the way up to 49.6 points in August 2016.
The local industrial sector is still slowing down. We remind you that any index value below level 50 is considered as a decline in the sector while any value above 50 indicates growth. At the same time, we remind you that the local industrial PMI has been below level 50 over the last 6 months.
Even though Japanese economists say that the industrial sector is showing signs of stabilization, the data still don’t allow us to see the overall picture and figure out whether this is really the case. Japan’s mining industries are reported to be showing some growth for the first time in 6 months.
Forex
Masterforex-V Academy reports that the Japanese Yen is currently going down in value against the U.S. Dollar, which means that USDJPY is rallying. This move is now considered a retracement against a long-term trend. For now, the price is moving around 101,81.
The closest major levels of resistance are MF pivots 102,62 and 107,46, and the top of the descending MF sloping channel, while the closest major level of support is located at 98,99, which is the all-time low.
