Forecast: How will Japan manufacturing PMI data impact USD/JPY?

NEW YORK (Forex News Now) – Leading business survey firm Markit is due on Wednesday to publish data on the Japanese manufacturing Purchasing Managers’ Index, in a major realtime forex news event affecting the yen.

Last month the index came in at a reading of 47.3, according to online FX trading news sites, continuing a trend that began in May after it hit 54.7. A reading of below 50.0 indicates industry expansion.

The new reading is scheduled for release at 11:15 A.M., GMT; as such it should have a big impact on currency market trading the following day.

According to USD/JPY analysis, should the data show a continuation of the index’s downward trend, it could lift the currency pair toward short-term resistance around the Dec. 27 high of 82.97.

But should the data show an unexpected reverse in the trend, USD/JPY could push toward short-term support around the Nov. 10 low of 81.55.