Japan's economy is still capable of growing further.

The Japanese yen has slightly weakened, reaching 147 yen per U.S. dollar. Newly appointed Prime Minister Shigeru Ishiba commented that it is too early to raise interest rates at this time. Meanwhile, Kazuo Ueda, Governor of the Bank of Japan (BOJ), mentioned that the current economic situation does not necessitate another interest rate hike, prompting investors to postpone their expectations for a BOJ rate hike.

Additionally, the Japanese government has urged the central bank to carefully consider raising interest rates again. Recent economic data shows that Japan's economic activity continues to expand amid strong demand. In contrast, recent U.S. economic data reveals that stronger-than-expected private sector employment helps the U.S. Federal Reserve hold back from aggressively cutting interest rates in the next meeting.

Japan's large manufacturers' confidence index stood at 13 in Q3 2024, in line with market expectations, as the economy continues to recover. The weaker yen has also benefited export-oriented companies, increasing their profits. Meanwhile, most companies plan to increase capital expenditures by 10.6% this year.

Japan's unemployment rate dropped to 2.5% in August, lower than the market's expectation of 2.6%, reflecting the expanding economy. The number of unemployed fell by 150,000 to 1.72 million, while employment increased by over 250,000, continuing the positive employment trend.

Japan's services PMI fell to 53.1, with the latest figures showing the third consecutive month of expansion in service sector activity, as new orders slightly increased. Export orders also grew, leading to continued employment growth. However, input costs have risen due to higher employment, wage growth, and the increased price of imports resulting from the weaker yen.

Techical analysis data (5H)

Resistance: 146.95, 147.26, 147.5

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 146.16 - 146.4 but cannot break the support at 146.4, you may set a TP at approximately 147.26 and SL at around 145.84 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 146.95 - 147.26, you may set a TP at approximately 147.5 and SL at around 146.16 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 146.95 - 147.26 but cannot break the resistance at 146.95, you may set a TP at approximately 146.16 and SL at around 147.5 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 146.16 - 146.4, you may set a TP at approximately 145.84 and SL at around 147.26 or according to your acceptable risk.

Pivot point October , 2024 11:23 AM. GMT+7