USD/JPY Technical Outlook 7-Dec-2015
USD/JPY Gained a fraction last week as both countries reported mostly mixed economic numbers. The week began with the pair gaining on Monday after Japan Retail Sales increased +1.8% y/y versus +0.9% expected, and Preliminary Industrial Production, which rose +1.4% compared to +1.9% anticipated.
Also on Monday, BOJ Governor Kuroda said that, “Looking at recent economic developments, the slowdown in emerging economies, particularly China, has affected Japan’s exports and production. Nevertheless, as years ago, the underlying trend in inflation has also been improving steadily.
Quantitative and qualitative monetary easing (QQE), which the Bank introduced in April 2013, has been exerting its intended effects toward overcoming deflation.” The rate then declined on Tuesday after Japanese Capital Spending increased +11.2% q/y versus +2.3% expected.
Wednesday saw the pair make its weekly high of 123.66 after a better than expected U.S. ADP Non-Farm Employment number. The rate then declined sharply on Thursday after a lower than expected U.S. ISM Non-Manufacturing PMI print. On Friday, the pair gained after a better than expected U.S. Non-Farm Payrolls number. USD/JPY closed at 123.10, with a gain of +0.3% for the week.