USDJPY is keeping positive momentum and getting close to its six weeks highs.
The Japanese Yen continues falling against the USD on Thursday afternoon. The current quote for the instrument is 107.92.
In the morning, Japan published a lot of numbers. The first one, the Producer Price Index, lost 0.9% y/y in August after reducing by 0.6% y/y in July and against market expectations of -0.8% y/y. The indicator describes the wholesale market prices and if there is a decline in it, there will be the same in the retail prices later.
The Tertiary Industry Activity added 0.1% m/m in Japan in July, which is quite good, because it was expected to lose 0.3% m/m.
The Core Machinery Orders became weaker as it lost 6.6% m/m in July. The indicator is rather volatile: In June, it added 13.9% m/m, but this month investors expected it to drop by 9.0% m/m. As a rule, this indicator is estimated as investments in the production sector. In case of decline, the amount of money invested in production is decreasing, which is not good for the Japanese economy.
The Yen seldom responds to the statistics, but, of course, the numbers should be closely monitored, because they may help to predict further activities of the Bank of Japan. The current decline of the Yen rate is mostly connected with contraction in demand for “safe haven” assets.
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.