The USD/JPY pair is growing in the middle of the week, the yen retreats for the second day in a row and it is probably not the limit.
The Japanese yen weakened for a second day in a row. The current quote in the USD/JPY pair is 121.87. Apparently, the instrument clearly has decided to return to 122.5-123.0. Tonight will show how strongly the dollar and the yen as ready to retreat.
Meanwhile, as the US Federal Reserve meets for the second day, the data on Japan was released. The index of business activity in the manufacturing sector of the Nikkei and Markit rose last month to a level of 52.6 points against the previous level of 52.5 points. Growth, of course, is symbolic, but now the trend is what is important. In addition, the indicator is steadily holding above the psychologically important mark of 50 points, which indicates a positivity in the manufacturing segment.
If the December PMI reports are positive, a good release of Japanese GDP can be expected for the first quarter of 2016 - the indicators have a deferred nature and create a good footing for the future.
Activity in the USD/JPY pair is below average. All major movement will happen here in the late afternoon, when the US Federal Reserve will make its decision on interest rates. The index has not increased since 2006, and about 80% of the futures market participants are waiting for its upward revision.
RoboForex Analytical Department
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