ISM Manufacturing Signals Contraction, USDJPY Hits Two-Week Lows

USDJPY slumps to two-week lows as the details in the ISM manufacturing disappoints. The ISM manufacturing headline came in at 49.1, beating the expectations of 45, but below the previous reading of 50.1. The PMI signalling contraction in manufacturing but the details are worse; the ISM Manufacturing New Orders Index registered in at 42.2, below the expectations of 50.2 in March, the lowest level since 2009. The ISM Manufacturing Employment Index registered in at 43.8 above the forecasts of 43.6 in March. Earlier, the ADP Employment Change came in at -27,000, topping the expectations of -150,000 in March.
Japanese Yen is attracting bids today as investors fear about the coronavirus crisis rise after the confirmed cases and deaths increase around the globe. Yen acts as a safe haven again despite the Japan Jibun Bank Manufacturing PMI came in at 44.2, below the forecasts of 44.8 in March. The Tankan Large Manufacturing Index came in at -8 above the estimates of -10 in the first quarter, while the Manufacturing Outlook came in at -11, also above the expectations of -14.

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USDJPY Technical Levels To Watch

USDJPY is 1.15% lower at 107.25 as the correction from the March 25, high continue and accelerates today after the pair breached below the 200-day moving average. The technical outlook turned bearish today, and lower levels might be on the cards.

On the downside, initial support for USDJPY will be met at 107.07 today’s low. If the pair breaks lower, the next support will be reached at 105.85 the low from March 18th trading session. If the selling pressure accelerates, the next support area will be met at 105.36 the low from March 13. 

On the flip side, immediate resistance for the USDJPY pair stands at 107.79 the daily high. The next resistance will be meet at 108.26 the 200-day moving average. The next hurdle will be met at 108.60 the high from March 31. 

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