Mixed Data out of Japan: USD/JPY
Rowan Crosby • 1 min read
A whole heap of data has been released from Japan today and overall it has been a bit of a mixed bag so to speak.
The quick headlines would suggest that employment is increasing with a drop in the employment rate to 2.3%.
However, retail sales data was clearly on the decline with quite a big miss of 0.4% vs 0.9% expected.
CPI and Industrial Production, two of the major numbers to look for came in at expectation, at 1.1% and 1.4% respectively.
The Japanese data is never really all that market moving and as such the USD/JPY is virtually unchanged on the day.
Morgan Stanley See Weakness
The USD/JPY has been under some pressure of recent times, however, there is still the potential for some more to come.
According to Morgan Stanley, the Yen is quite susceptible to current falls in US yield as foreigners buy up US debt products.
However, on the home front, there are some concerns around the new taxes that are being introduced in the current year budget.
Currently, the USD/JPY is trading above the important support level at 110.00 and has been grinding higher in line with a strong USD.