The USD/JPY pair is retreating on Friday; investors are trying to benefit from the situation each time the USD is getting weaker.
On Friday, the Japanese Yen is trading to the upside against the USD. the current quote for the instrument is 113.19.
Today’s statistics showed that the Revised Industrial Production decreased by 3.6% m/m in May after losing 3.3% m/m the month before and against the expected reading of the same 3.3% m/m. Basically, the report was no surprise for investors, because the indicator has been moving in the downtrend for some time.
The main catalyst for the USD/JPY pair right now is the USD weakness. After Janet Yellen, the Fed chair, told about a short period of the weak inflation and expectations of stable economic growth, the USD got stronger, but not enough to continue the momentum. Investors couldn’t decide if they really should expect the rate to be increased by the Fed this year. So far, CME futures indicate that the expectations of the rate increase in December are 50%, for other months it’s very insignificant.
Without doubts, the American regulator is really counting on the inflation recovery towards the target of 2%, but it’s quite unlikely to happen. This is why the USD is getting real, thus allowing other currencies to get more expensive.
RoboForex Analytical Department