USDJPY is trading upwards; the Japanese Yen got under pressure. The Japanese Yen remains under pressure against the USD on Tuesday. The current quote for the instrument is 110.10. The statistics published earlier showed that the Industrial Production in Japan added 2.9% m/m in April after being 2.5% m/m in March. The data is seasonally adjusted, that’s why it may be considered quite objective.
The components of the report show that the major contributions were general-purpose and business-oriented machinery (15.7%), electrical machinery, and information and communication electronics equipment, and production machinery (10.4%), and production machinery (7.7%).
On YoY, the indicator skyrocketed by 15.8% in April after expanding by 3.4% the month before. It’s an excellent result. This week, Japan will be very active in publishing macroeconomic data. For example, there will be a report on the Core Machinery Orders on Wednesday, which may provide insight into the domestic demand and potential household spending, which is a big problem for Japan. Any hints at improvements will be positive, especially for the Yen.
At the moment, the Japanese currency is under pressure from investors’ positive attitude to risks. In such cases, their interest in “safe haven” assets is decreasing.