USDJPY is falling and getting ready to update this month’s lows.
The Japanese Yen is still very strong against the USD. The current quote for the instrument is 108.70. The pair is so close to updating February’s lows and moving towards September “bottom”.
The statistics published today were rather mixed for the Yen. The PPI report showed that the indicator added only 2.7% y/y in January after expanding by 3.0% y/y in December last year. However, the current reading matched expectations and didn’t cause any fluctuation on the market.
The components of the report showed that export prices lost 0.4% m/m (+1.8% y/y), the same as import prices (-0.4%m/m and +4.9% y/y). The numbers are quite mixed, but both of them fell at the beginning of the year. It’s not the best signal for the Bank of Japan, which is fighting for stability in the price segment.
Another report (a preliminary one), the Machine Tool Orders, showed that the indicator increased up to 48.8% y/y in January after being 48.3% y/y the month before. This report itself, which is one of the components of the aggregate report on the Industrial Production, has no significant influence, but today’s reading is still considered as positive.
Meanwhile, the most important thing for the Yen right now is investors’ demand for “safe haven” assets, although this demand is getting weaker as global indices are reaching stability.
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.
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