The Yen is rising. Overview for 15.11.2017

The USD/JPY pair is trading to the downside on Wednesday after Japan published quite mixed GDP report.

In the middle of the week, the Japanese Yen is gathering momentum and strengthening against the USD. The current quote for the instrument is 112.86.

The statistics published today showed that the Japanese GDP in the third quarter, according to preliminary estimates, expanded by 0.3% q/q after adding 0.6% q/q the quarter before and against the expected reading of +0.4% q/q. However, on YoY the indicator increased by 1.4%, which is better than expected (+1.3%). The components of the report show that the GDP Price Index improved by 0.1% y/y after losing 0.4% y/y in the second quarter. In general, the indicator slowed down due to the Business Spending, which rose at a slower pace, and the Private Consumption, which fell for the first time in almost two years.

Nevertheless, the GDP reports have been showing progress for seven consecutive quarter, and that’s good for the Yen.

The final report on the Industrial Production showed -1.0% m/m in September, which is a bit better than both the previous reading and expectations. On YoY, the indicator expanded by 2.5%, which is less than before, but still quite good.

In addition to that, the USD is weakening a little bit right now and that’s also in favor of the Yen. Investors are nervous because of implementation of Donald Trump’s taxation reform and prefer to close long positions in the USD.

RoboForex Analytical Department