USDJPY is moving upwards on Thursday afternoon but market players trust in the “safe haven” Yen.
The Japanese Yen is falling a little bit against the USD on Thursday. the current quote for the instrument is 107.32.
The statistics published by Japan in the morning showed that the Core Machinery Orders added 1.7% m/m in May after losing 12.0% m/m in April. Market expectations implied another decline by 5.2% m/m.
This is a core indicator, which excludes volatile goods. The country’s need for products of the Machinery sector means that the Japanese economy, which plummeted into recession at the beginning of 2020, is still staying healthy and able to recover. This, in its turn, calms policymakers down, who are closely watching the current situation in the country.
As for foreign orders, it’s still very sad. In May, the indicator lost 18.5%, which is the biggest decline since 2010. One can clearly see how much the COVID-19 pandemic damaged the global economy, including Japan.
For Japan, the population of which is aging pretty fast, automation of production processes plays a very important role. However, it requires investments and capital expenditures, so the Bank of Japan is going to take a close look at this component in the nearest future, including its July meeting.