The USD/JPY pair completed the correction that had been taking place over the next previous days and right now is consolidating to find new targets.
The Japanese Yen is neutral on Wednesday. The current quote for the USD/JPY pair is 109.91.
The statistics published today showed that the PPI in Japan expanded up to 2.9% y/y after being 2.6% y/y in July and against the expected reading of 3.0% y/y. On MoM, the indicator hasn’t changed. The export prices decreased by 0.5% m/m (+8.6% y/y), the import ones – by 1.3% m/m (+12.5% y/y).
The most interesting component here is domestic prices for goods. In August, they expanded by 0.7% y/y. This indicator describes the consumer sentiment and helps to predict the inflation more precisely. So far, the Index is quite stable.
The BSI Manufacturing Index in Japan skyrocketed by 9.4% q/q in the third quarter after losing 2.9% q/q in the previous one. All reports were better than expected. From the point of view of the economic trend monitoring, the situation is very positive.
The demand for the Yen as a “safe haven” asset hasn’t returned yet, but the market is surely ready for it. Over the last three trading sessions, the USD/JPY pair has been corrected to the upside after reaching the “local bottom”. Now, when the pair is less oversold, the Yen is looking rather attractive.
RoboForex Analytical Department
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.