USDJPY Hit Fresh Highs Post ISM Manufacturing PMI02 June, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis
- US dollar rocketed higher against the Japanese Yen after the US ISM Manufacturing PMI release.
- US Institute for Supply Management (ISM) Manufacturing PMI rose to 52.8 in May 2015, compared to April’s reading of 51.5.
- US Manufacturing Purchasing Managers Index (PMI) released by the Markit Economics missed the forecast by a minor margin and came in at 54.0 in May 2015.
- US Personal Income released by the Bureau of Economic Analysis, Department of Commerce posted an increase of 0.4%, more than the expectation of +0.3%.
US ISM Manufacturing PMI
Earlier during the NY session, the US Institute for Supply Management (ISM) Manufacturing Index was released, which shows business conditions in the US manufacturing sector. The forecast was lined up for a rise from the last reading of 51.5 to 52.0. However, the outcome was above the forecast, as the US Institute for Supply Management (ISM) Manufacturing Index managed to increase by a fair margin to 52.8 in May 2015.
The report stated that the Employment Index was up by 3.4 percentage points to 51.7 percent, pointing growing employment levels from April.
US Markit Manufacturing PMI
There was one more important release lined up in the US, as the Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics. The market was expecting an increase from 53.8 to 54.2 in May 2015. However, the outcome was a bit on the lower side, as the US Manufacturing Purchasing Managers Index rose from the last reading of 53.8 to 54.0.
Commenting on the release, the Chief Economist at Markit, Chris Williamson, stated “With manufacturers reporting the smallest rise in new orders since the start of last year, the survey provides further evidence that the strong dollar is hurting the economy”.
USDJPY – Technical Analysis
The US Dollar was higher versus most major currencies, as the US ISM Manufacturing PMI impressed buyers. The USDJPY enjoyed a good rise, as it rose to a new weekly high of 124.67, and looks poised for more gains in the near term.
On the downside, the last swing low of 124.40 might act as a support now, and on the upside, the 125.00 handle might present a challenge to buyers.