The Yen is retreating aggressively. Overview for 31.08.2017

The USD/JPY pair has been rising for the third consecutive day; the market considers that the Yen’s previous growth was “too much”.

On Thursday morning, the Japanese Yen continues to retreat against the USD. the current quote for the instrument is 110.56.

Today’s statistics showed that the preliminary Industrial production in Japan lost 0.8% m/m in July, which is more than expected. In the previous months, the indicator added 2.2% m/m. In a way, the July decline may be considered as the correction of the strong June reading, but still, it’s not very good.

Another report, the Housing Starts, showed the decline by 2.3% y/y, although it was expected to lose 0.3% y/y. Then again, the moth before the indicator added 1.7% y/y.

In general, instability of the main macroeconomic parameters is rather typical for the economy, which is in transition from stagnation to improvement. When it comes to the Japanese statistics, the indicators are changing from positive to very negative. It may represent some structural problems in the economy, such as the weak inflation and lack of consumer interest.

As a matter of fact, the statistics has had less influence on the Yen behavior recently. Earlier in August it was supported by the growing demand for “safe haven” assets, but right now the USD is recovering and it counts against the Yen.

RoboForex Analytical Department