On Wednesday morning, USDJPY is trading within a narrow range; investors can’t decide on their priorities.
The Japanese Yen continues trading inside a narrow range against the USD on Wednesday. The current quote for the instrument is 1.1331.
One should note that the USD is not really strong right now due to lack of progress in US-Chinese trade talks and in anticipation of the CPI report from the USA. However, the Yen isn’t getting more expensive – market players are getting away from risks and don’t require “safe haven” assets.
In the morning, Japan reported on the Core Machinery Orders, which added 5.2 % m/m in April after expanding by 3.8% m/m the month before. If we consider this report as one of the major indicators to contribute to the Japanese economy, then the situation is quite positive.
Apart from this, Japan published the PPI for May, which added 0.7% y/y after showing +1.3% y/y in the previous month. This decline may indicate problems with the price formation, which is the primary “headache” for the Bank of Japan.