USD/JPY
On Friday, moderately optimistic quarterly indicators of Japan's business activity (Tankan) was released, but the fall of stock indices in the US did not allow the yen to develop growth. The Tankan Manufacturing Index for the 4th quarter remained unchanged at 19 points, against the forecast of a decline to 18 points. The Tankan Non-Manufacturing Index rose from 22 to 24 against the forecast of a decline to 21. The December Manufacturing PMI grew from 52.2 to 52.4.
The deterioration was shown by Chinese data, which, in fact, affected the stock market, which now partly shows the prospects of China's relations with the United States. China's industrial production in November declined from 5.9% yoy to 5.4% yoy, retail sales pursed from 8.6% y/y to 8.1% y/y. the S&P 500 has decreased by 1,91%, the yen by 23 points. Nevertheless, the trend line of the price channel and the indicator balance line of the daily time frame proved to be a strong support. Today in the Asian session the price is already showing growth. Over the weekend, the calm came to the stock markets – Asian indices are growing; Nikkei 225 0.66%, S & P/ASX 200 0.84%. Chinese indexes albeit slower, but also recovering: China A50 -0,16%, Shanghai Composite is 0.01%.
We expect the price to overcome the resistance of the upper limit of the falling price channel (113.85) and further increase to the resistance of the rising price channel – 115.25.
