Japanese yen remains quite strong in the US dollar pair. The USD-JPY price was 108.7 this morning. The rate can hit the February bottom soon and head to the September minimum.
Japan has announced diverse data for the yen today. The producer price index in the country increased just 2.7% y-o-y in January (3.0% y-o-y in December). However, the report was in line with the expectations and failed to summon dramatic fluctuations in the currency market.
According to the released statistics, export prices decreased 0.4% m-o-m and 1.8% y-o-y over the period under review. Import prices slid 0.4% and 4.9% respectively. The data is heterogeneous, but all indicators showed a decline at the beginning of the year. This is a not a great sign for the Bank of Japan that is struggling for stable price trends.
According to the preliminary data, the core machinery orders in Japan rose t 48.8% y-o-y in January (48.3% earlier). This report is just a part of the total manufacturing data and does not have strong impact alone, but the current results are considered as positive.
At the same time, investors’ demand for safe haven assets also plays important role for the yen now, though its support is weakening as the global indices stabilize.