USDJPY continues trading sideways; market players can’t decide on their attitude towards “safe haven” assets.
The Japanese Yen remains within the sideways channel against the USD. The current quote for the instrument is 104.00.
Investors haven’t yet decided on their attitude towards “safe haven” assets. One day they need the Yen to avoid risks, the next day their sentiment gets better and the Yen starts correcting.
The revised report on the Industrial Production in Japan showed -0.5% m/m in November against both previous and expected readings being at zero. This is the first decline over the last 6 months. The components of the report show that the largest decreases came from motor vehicles (-4.5% vs. 6.8% the month before), chemicals (-4.0% vs -0.1%), business-oriented machinery (-3.3% vs 4.0%), and transport equipment (-3.1% vs 4.8%).
On YoY, the indicator showed -3.9%, while the Capacity Utilization lost 2.9% m/m
It’s quite understandable why industrial companies do not increase production – they are not sure of the final demand. The Japanese industry is export-oriented and the coronavirus pandemic makes export prospects rather unclear and dim.
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.