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USD/JPY trading signal - Richmond Fed Manufacturing - 26 Jun 2018

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21:00 GMT
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The Richmond Fed manufacturing index report will be released today at 15:0 GMT. The data comes alongside the U.S. Conference Board's consumer confidence index as well.

Consumer confidence, as measured by the Conference Board is expected to ease slightly to 127.6 compared to 128.0 seen the month before in May. U.S. consumer confidence has been at an all-time high and underlines the fact that the U.S. economy is powering ahead.

The Richmond Fed manufacturing index, which is a regional manufacturing index indicator and one that is forward looking is expected to show that activity as measured by the index eased to 15. This marks a slightly slower pace of activity compared to 16 that was registered the month before.

The regional manufacturing index reports come ahead of next week's ISM manufacturing PMI. Manufacturing activity in the U.S. has remained steady and sits near all-time highs indicating that the U.S. economy continues to enjoy a strong period of growth.

The data also underlines the fact that the Federal Reserve will continue with its rate hike plans in the near term.

Based on the above, today's trading signal is USDJPY. The currency pair has been trending weaker and on an intraday basis, support has been formed at 109.43. We expect USDJPY to rebound off the support level, then to find resistance near 109.80 and eventually to close lower on the day.

usdjpy trading signal 26 jun 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.