The American dollar continues to decline against the Japanese Yen amid bad American macro-economic statistics. The pair is traded in the range of 119.20-119.44. Many analysts fear that despite economic stimulus measures, the USA can come up to the brink of recession. New York’s manufacturing sector statistics was lower than expected. In April this index fell to -1.19 points, which is the lowest level in the last 23 months; while analysts forecasted the rise to 7.17 points. The other negative factor is the decrease in new industrial orders. This index has been declining for the second consecutive month and has reached -7 points.
Today, the data on the initial applications for unemployment benefits and the number of new houses foundations will become known. If statistics turns out to be negative, the USD will continue to decline and the US Fed will have to postpone the revision of the interest rates, which were expected to be increased this year.
Support and resistance
The nearest resistance level is 119.53 (2/8 Murray). Support level: 119.14 (1/8 Murray).
It is recommended to open short positions after breakdown of the level of 119.14 with the protective order at 119.50 and the target of 118.40.