{"id":143400,"date":"2019-03-11T10:45:17","date_gmt":"2019-03-11T14:45:17","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=143400"},"modified":"2019-03-11T07:04:26","modified_gmt":"2019-03-11T11:04:26","slug":"cnhjpy-chinese-yuan-japanese-yen-analysis-new-facts-of-slowdown-in-china","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/03\/cnhjpy-chinese-yuan-japanese-yen-analysis-new-facts-of-slowdown-in-china\/","title":{"rendered":"CNHJPY Chinese yuan\/Japanese yen Analysis: New facts of slowdown in China"},"content":{"rendered":"
March 11, 2019<\/div>
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By IFCMarkets<\/a><\/strong><\/p>\n

New facts of the slowdown in Chinese economy<\/strong><\/p>\n

In this review, we suggest considering the personal composite instrument (PCI) \u201c&CNHJPY\u201d. It reflects the price dynamics of the Chinese yuan against the Japanese yen. Will the CNHJPY<\/a> fall?<\/p><\/blockquote>\n

Such dynamics are observed in case of the weakening of the yuan and the strengthening of the yen. On Friday, very weak foreign trade data for February 2019 came out in China. Exports decreased by 20.7% compared with February of the last year and turned out to be the lowest over 3 years. Imports fell by 5.2% for the third month in a row. As a result, China\u2019s trade surplus was only $4.1 billion vs $39.1 billion in January 2019. All these factors may have a negative impact on the exchange rate of the yuan and indicate a further slowdown in the Chinese economy. Let us recall that according to the results of 2018, China\u2019s GDP showed a minimum growth over the past 30 years by 6.6%. The recent Japanese macroeconomic data were positive. GDP for the 4th quarter of 2018 year over year grew by 1.9% and exceeded forecasts. The current account surplus in January was also better than expected. Let us note that it has been positive in Japan since July 2014.<\/p>\n

\"CNHJPY\"<\/p>\n

On the daily timeframe, CNHJPY: D1<\/b> breached down the support line of the uptrend. A number of technical analysis indicators formed sell signals. The price decrease is possible in case of a faster slowdown in the Chinese economy compared with the Japanese economy.<\/p>\n