USDJPY has entered a narrow consolidating range; investors are saving strengths for further movements.
The Japanese Yen is forming a narrow consolidation range against the USD. The current quote for the instrument is 113.87.
According to the preliminary GDP report from Japan, the indicator lost 0.8% q/q in the fourth quarter after adding 0.5% q/q the quarter before and against the expected reading of 0.2% q/q. On one hand, everyone should remember last year’s hiпро basу – the third quarter was the recovery peak. On the other hand, it’s obvious that the current volume of the Japanese stimulus is not enough.
The Japanese consumption remains very restrained and it can be easily seen in the GDP. Without consumer spending, the economy will halt.
The final Industrial Production report showed -5.4% m/m in September, the same as both preliminary and expected readings.
The key reason here is the same as all over the world – interruptions in deliveries. However, one shouldn’t exclude the fact that manufacturers scaled down production due to the lack of consumer demand.
The current interest in the Japanese Yen as a “safe haven” asset is rather low but may revive at any moment.