Trading Trifecta: PMI-Fueled Dollar Strength, CAD/JPY Pullback & GBP/JPY Retest

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Macro Momentum Meets Key Technical Zones

As markets kick off the second half of 2025, global PMIs have surprised to the upside—yet manufacturing remains in contraction, keeping the USD on its toes. The June ISM report nudged slightly higher, giving the dollar fresh legs after Powell’s cautious tone. Against this backdrop, two chart setups stand out: CAD/JPY is testing support near 105.00, a zone reinforced by moving averages and channel lines, while GBP/JPY is retesting its triangle breakout level, offering clues on whether bulls will reclaim control or yield to fresh selling pressure. Blending these macro threads with pinpoint technical levels helps traders pinpoint compelling entry and exit zones in a market that’s balanced between resilience and caution.

⚡ Daily Broad Market Recap – July 1, 2025

• Global manufacturing PMIs from the U.S., Europe, and Asia showed mixed but mostly stronger-than-expected readings, setting a cautiously optimistic tone.

• Equities saw rotation out of mega-caps into cyclicals, while safe-havens like gold rallied on fiscal uncertainty and Fed rate-cut speculation.

🔥USD Edges Higher as June ISM Manufacturing PMI Reflected Slower Contraction

• The ISM Manufacturing PMI rose to 49.0 from 48.5, still in contraction but signaling a modest improvement.

• USD/JPY led gains, driven by renewed hawkish bets after traders digested both the PMI uptick and Powell’s guarded remarks.

📊 CAD/JPY’s Trend Pullback Opportunity Near 105.00

• CAD/JPY is finding support around the 100-period SMA and ascending channel floor on the 4-hour chart.

• A bullish candlestick setup here could spark a rally toward 106.00 and retest last week’s 107.00 highs./

📉GBP/JPY Triangle Breakout Retest

• After breaking above the ascending triangle, GBP/JPY has pulled back to retest the breakout zone near 196.50.

• Watch for either a clean bounce to validate new support or a breakdown that could extend the correction to 195.00 and beyond.

Fueling Your Evolution

This issue blends broad market signals with precise chart triggers. From PMI-driven dollar moves to critical support tests in CAD/JPY and GBP/JPY, the articles equip you with both the macro context and tactical levels needed to enter trades with conviction. Dive in to align your strategy with the evolving landscape and seize timely opportunities.

Happy Trading!

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