On Friday, the USD/JPY pair is rising ahead of publishing of controversial statistics from Japan, but the short-term trading range keeps being stable.
On Friday afternoon, the Japanese Yen is becoming cheaper against the USD, but the borders of the short-term trading range isn’t changing. Right now, the pair is close to its upper border. The current quote for the instrument is 113.78.
This morning, they published the statistics on activity index of large manufacturers and companies in industrial sector over the first quarter of the year. The indicator decreased up to -7.9% against the previous number of 3.8% and the predicted number of growth up to 4.2%. The smaller the number, the more pressure is put on the Yen.
The report itself may be considered as some average information, something like the data about moods and activities taking into account past and future expectations. It is useful for understanding domestic industrial economic factors, but it would be unwise to rely on this average information when making any predictions.
Talks that the Japanese economy lost the impulse, which are based on today’s report, are also quite far from reality. Winter is a “low” season, including industrial production. I assume that in the second quarter we can expect at least a correction.
It would be more convenient for the Japanese economy if the Yen weakened gradually. In this case, exporters would find themselves in a strong position and could transfer their increased profit to the budget. However, right now there are no any clearly defined tendencies in the USD/JPY pair in the long run.
RoboForex Analytical Department
Without authorization, you can view no more than two reviews per day and no more than 10 per month. To continue reading analytical reviews, register or login to your Members Area.