The USD/JPY pair has strengthened at the beginning of the new trading week, despite the good statistics on Japan.
The Japanese Yen is retreating in tandem with the US dollar on Monday afternoon. The current quote in the USD/JPY is 123.01.
Today, Japan has introduced some interesting statistical data. Industrial production in October in Japan has added 1.4% m/m against the rise by 1.1% m/m in September. Yearly, industrial production fell in October by 1.4%. Don’t be alarmed by the negative figures of the annual observations – the indicator is improving its position for the second month in a row, and that gives hope stabilization. If the trend gathers momentum, by the end of December the indicator can improve to -0.8-0.9% y/y.
In addition, the figures on retail sales for the last month came out. The index gained 1.1% against September improvement by 0.8%. Yearly there is a noticeable positive breakthrough from -0.1% to 1.8%. This is a good signal. Now it is important that it takes hold.
If consumers are willing to spend again - and this is shown by the indicator of retail sales - Japan's economy will be able to count on good support from this side. The more of this kind of stats, the better will be the expectations for key macroeconomic indicators for the next year.
At the moment, the yen is under pressure from the US dollar. The ensuing week will be turbulent for the foreign exchange market because of the planned large block of critical data. The main market movement will begin on Wednesday evening.
RoboForex Analytical Department
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