On Wednesday, the USD/JPY pair is falling a little bit, but continues trading in the same mid-term range.
In the middle of the week, the Japanese Yen is slightly growing against the USD. The current quote for the instrument is 114.68.
The Industrial Production Final in Japan in January decreased by 0.4% m/m. The December reading was ‑0.8% m/m and expectations were the same. On YoY, the indicator added 3.7% against expectations of 3.2%.
On MoM, the indicator weakened less than expected, but this winter decline might be not the last one. However, the components of the report don’t provide any signs of difficulties in the sector: the Capacity Utilization in January added 0.1%, thus continuing the December tendency, although a bit slower. Facilities drain supplies (-0.1% in January) and increase deliveries at the same time. Everything is pretty smoothly, although there is something disturbing.
Such passive movements of the USD/JPY pair are expected to continue until today’s evening. After that, the market’s attention will be focused on the UAS Fed meeting, which is set to be over on Wednesday evening. Everything will depend on the comments relating to the rate increase. If the assumptions that the regulator may increase the rate three times this year are confirmed, the USD will get stronger against other currencies.
RoboForex Analytical Department