On Wednesday morning, USDJPY is falling; support to the USD did not last long.
The Japanese Yen is growing against the USD on Wednesday morning. The current quote for the instrument is 107.05.
The Yen is strengthening not because investors suddenly took interest in it, but because there is a demand for “safe haven” assets. In the evening, the USA will report on the second estimation of the GDP in the fourth quarter 2017, thus making investors nervous, because the previous reading was not impressive.
In the morning, Japan also published several macroeconomic reports and all of them were negative. The Retail Sales in Japan increased up to 1.6% y/y in January after being 3.6% y/y the month before. The expected reading was 2.3% y/y.
The Industrial Production lost 6.6% m/m in January after adding 2.9% m/m in the previous month and against the expected reading of +4.1% m/m. On YoY, the indicator added 2.7%, although it was expected to expand by 5.2%. Mostly, the decline was caused by transport equipment, information & communication electronics equipment, electrical machinery, and electronic parts & devices.
Another report, which was published a bit later, also disappointed. The Housing Starts decreased by 13.2% y/y this month after losing 2.1% y/y in December and against the expected reading of -4.5% y/y. However, in the components of the report investors found a positive moment: the Construction Orders expanded by 0.9% y/y and may improve the main indicator in the long-term.
RoboForex Analytical Department