In the middle of the week, the USD/JPY pair is falling rather actively; the pause in sales was short.
The Japanese Yen resumed growing against the USD on Wednesday as the paused in sales turned out to be quite short. The current quote for the instrument is 109.95, which is the lowest since September 12th 2017.
Today’s statistics showed that the Nikkei Manufacturing PMI Flash in Japan increased up to 54.4 points in January after being 54.0 points before and against the expected reading of 54.3 points. For the Japanese economy, it’s a very important indicator as it shows economic and manufacturing conditions: the higher the reading, the better for the Yen.
In the comments, the Nikkei agency said that the Index improved thanks to new orders increase in the manufacturing sector. The indicator increased at the fastest pace over the last 47 months.
Apart from this, the Yen is getting stronger because the USD is getting weaker. One can’t say that the growth of the Yen is good for the Japanese economy, because it will surely have negative impact on exporters and the country’s budget. However, as a rule, the Bank of Japan prefers not to interfere, but to watch from the sidelines.
RoboForex Analytical Department