The yen will weaken further
30.09.2014
The USD/JPY pair has slightly corrected after a block statistics for the Japanese economy, but fundamentally it does not change anything.
The Japanese yen will weaken further. Yesterday the USD/JPY pair has reached a six-year high of 109.74, and this morning has corrected, but just a little bit.
Investors are now paying very little attention to the statistics, but that’s too bad. Data published on Tuesday morning, showed that industrial production in Japan fell in August by 1.5% against the forecast of growth of 0.3%. Yearly the rate fell to 2.9%, and it is very much a given that the economy of the rising sun is very closely "tied" to the production.
Simultaneously, the authorities have indicated that they will extend the incentives to support both consumers and producers.
Do recall that in 2015 the Japanese government intends to once again raise the sales tax to ultimately bring it to worldwide.
Overall, the yen remains in a weak position. The USD/JPY pair, after a short period of stabilization will return to move to 110.5.
RoboForex Analytical Department
The Japanese yen will weaken further. Yesterday the USD/JPY pair has reached a six-year high of 109.74, and this morning has corrected, but just a little bit.
Investors are now paying very little attention to the statistics, but that’s too bad. Data published on Tuesday morning, showed that industrial production in Japan fell in August by 1.5% against the forecast of growth of 0.3%. Yearly the rate fell to 2.9%, and it is very much a given that the economy of the rising sun is very closely "tied" to the production.
Simultaneously, the authorities have indicated that they will extend the incentives to support both consumers and producers.
Do recall that in 2015 the Japanese government intends to once again raise the sales tax to ultimately bring it to worldwide.
Overall, the yen remains in a weak position. The USD/JPY pair, after a short period of stabilization will return to move to 110.5.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.