The USD/JPY pair is trading upward on Tuesday afternoon - the market has very few drivers for movement, and the investors are bored.
The Japanese Yen is rising in price on Tuesday in tandem with the US dollar. The current quote in USD/JPY is 122.61.
This morning, Japan published data on the index of business activity of the manufacturing sector in November. The index rose to 52.8 points against the forecast of 52.1 points and the previous value of 52.4 points. The indicator has strengthened for twenty months in a row. Its growth indicates the stability of business sentiment, maintaining the index above the "breakwater" of 50 points indicates improvement in the sector.
Inflation in the manufacturing sector remains in place and does not show significant fluctuations, while domestic prices rose. The components of the release show a strengthening in external demand for goods, and it is quite a positive point. Simultaneously, the levels of production and its volume are increasing. Now they are almost at the highs for the year.
This rather positive release is unable to neutralize a key negativity for the Japanese economy - GDP remains in a recession and this must be somehow fought. The internal capacity of the economy of Japan is very significant, stimulation is working, the rates are minimal - but because of weak international demand in the target countries for Japan, all this does not give the desired powerful effect.
RoboForex Analytical Department
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