After updating its local low, USDJPY started a new correction; the statistics aren’t in favor of the Japanese currency.
The Japanese Yen has been retreating against the USD for several consecutive trading sessions after rallying towards its multi-week highs. The current quote for the instrument is 107.78.
Today’s statistics from Japan weren’t very favorable for the Yen. In February, the Nikkei Manufacturing PMI Flash decreased up to 54 points after being 54.8 points the month before and against the expected reading of 55.2 points. The indicator is still above the psychologically-crucial level of 50 points, which separates decline and growth, but today’s number didn’t make anyone satisfied.
In the comments, the Nikkei agency stated that despite increasing numbers of employment, the efficiency parameters were improving very slowly and the number of new orders was the lowest over the last four months. Apart from this, transfer prices for manufactured goods are growing slower than expected.
In other words, the dynamics is rather mixed and complicated. The Yen strengthening in February surely was negative, but the positive labor market is a god sign, because it may boost the PMI later.
The second half of today’s trading session may be very volatile. Investors are waiting for the latest FOMC Meeting Minutes, which may contain more detailed information on further increase of the regulator’s benchmark rate this year.
Orgin: RoboForex
