Japanese yen shows rise on Tuesday

Posted 13 February, 2018

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.

Previous forecast

13 February, 2018 11:06

← Bulls make new attempt to press for higher price in GBP-USD

The 4H chart shows that GBP has got substantial support at 1.3785-1.3810 handle. The pair has been mainly bullish since the yesterday’s American session. The exchange rate stays well below 34-, 144-, 55- and 89-period moving average that is the line of the resistance of  1.3895, 1.39475, 1.4000 and 1.40575. The MACD remains in the negative area, but above its signal line for now.

Bulls make new attempt to press for higher price in GBP-USD

Next forecast

12 February, 2018 18:16

Another stock exchange crash can boost USD positions →

Stock market development had a bigger impact on currency sector in the form of pressure on high-yields assets and more active demand for US dollar as a protective asset, a market analyst believes. Today risk-off policy has taken a back seat, and stock markets are attempting to recover, which affected interest in the US currency.

Another stock exchange crash can boost USD positions
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