USDJPY continues rising; the Yen is under long-term pressure.
The Japanese Yen is as weak against the USD as it was a year ago. The current quote for the instrument is 110.73.
The statistics published by Japan this morning were mostly positive. The Tankan Manufacturing Index went to 5 points in the first quarter of 2021 after being -10 points the quarter before. The Tankan Non-Manufacturing Index showed -1 points after being -5 points over the same period of time.
Recovery of both indicators may have something to do with the local support of the Yen rate and confidence of businesses that market conditions may improve by the second half of the year.
The Manufacturing PMI showed 52.7 points in March after being 52.0 points in the previous month. It’s a good signal.
However, the numbers published earlier weren’t impressive. For example, Industrial Production lost 2.1% m/m in February after adding 4.3% m/m in January. Another report, the Housing Starts dropped 3.7% y/y after losing 3.1% y/y the month before.
The Yen is still under pressure from the fact that the Japanese authorities aren’t willing to increase the stimulus programs. Another factor that makes the Yen retreat is the strong USD.
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.