FX.co ★ Global macro overview for 24/03/2017

Global macro overview for 24/03/2017:

The PMI Manufacturing data from Japan was worse than anticipated. The PMI Index decreased from 53.5 points to 52.6 points, while the market participants expected only a tick down to 53.3 points. It was the lowest reading in three months, but still any PMI above 50 signals expansion in economic activity, whereas a reading below that level signals contraction. March was the seventh consecutive month manufacturing activity expanded, however, output, new orders, and new export orders increased at a slower rate in March. Future expectations remained positive, although optimism was more subdued than in previous months.

Let's now take a look at the USD/JPY technical picture at the H4 time frame. The market is still trading inside of the technical support zone between the levels of 110.62 - 111.30 and if the bull camp will not manage to break out above it, then the 50%Fibo at the level of 109.92 will be tested. The oversold trading conditions and positive divergence help the bullish case, but so far all attempts to break out higher resulted in a failure.