The Yen is saving its strengths. Overview for 23.06.2017

The USD/JPY pair is trading to the downside slowly, but the volumes are small. The market is saving its strengths and waiting for the news.

At the end of the volatile week, the lack of significant drivers makes all major currency pairs consolidate. The Japanese Yen is slowly growing, but the volumes aren’t very big. The current quote for the USD/JPY pair is 111.26.

The statistics published by Japan in the morning showed that the Nikkei Manufacturing PMI decreased up to 52 points in June after being 53.1 points the month before. The indicator was expected to grow up to 53.4 points, but indeed it failed.

The PMI readings usually describe the situation in manufacturing and assesses its “health”. The fact that the indicator fell to the seven months’ lows says that some of the parameters of the Japanese economy are falling.

The decline if the Index to the lowest numbers doesn’t make the Japanese government happy, but it is not too critical. The indicator is still above 50 points, a psychologically-crucial level that separates the decline from the growth. Most likely, the manufacturing PMI will fall for another month or two, but then it may start consolidating at 51-51.5 points.

For the Japanese Yen, this statistics is not very important, but the currency market has been paying little attention to the fundamental aspect recently.

RoboForex Analytical Department