📊 Market Analysis: How might the PMI report impact USD/JPY this week?

Product: USD/JPY

Prediction: Decrease

🟢Fundamental Analysis:

On Tuesday, the preliminary PMI will be released, and on Friday, investors will focus on Tokyo's CPI data. It's uncertain if the Bank of Japan will raise rates this year, as Japan's economy shows mixed signals and inflation pressures ease. If the PMI indicates continued recovery and Tokyo's CPI rises, the yen could strengthen. Looking ahead, expectations for more rate hikes remain strong as Japan's August National CPI rose to 3%, up from 2.8% in July, with the core CPI also increasing to 2.8%.

🔵 Technical Analysis:

USD/JPY is set to end the week on a positive note, but the overall downtrend persists. It has struggled to break above $144.46, and the downtrend may accelerate as the 50-day moving average crosses below the 100- and 200-DMAs. In the short term, the pair could rise, with resistance at $144.40, then $145.00, and the September 3 high of $147.21. On the downside, support lies at $143.00, with the next level at $142.04.

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