On Wednesday afternoon, USDJPY is trading to the downside, but pretty close to the highs it reached on January 23rd.
The Japanese Yen stopped falling against the USD on Wednesday, but it is sure ton the end of the story. The current quote for the instrument is 110.14.
The strength of the American currency may be explained despite the weak April report on the US Retail Sales published yesterday. The 10-Year Bond continues improving – right now, it’s more than 3%; at the same time, the potential to continue the rally on American stock exchanges is also quite high. In this light, the USD is looking fine despite the fact that the statistics didn’t meet expectations.
The numbers reported by Japan in the morning weren’t too good for investors. The preliminary report on the GDP in the first quarter 2018 showed -0.2% q/q after +0.4% q/q the quarter before and against the expected reading of 0%. On YoY, the indicator also disappointed as it lost 0.6% after adding 0.6% (revised to 1.6%) in the previous quarter.
Judging by the statistics, there might be problems in the Japanese economy, unless these weak numbers are the result of some local and seasonal factors. The country’s economy decreased for the first time over 8 quarters.
The Japanese Industrial Production expanded by 1.4% y/y in March, which is more than the expected reading of +1.2% y/y.