What’s next? – USDJPY 18.01.18

The dollar was trading 0.06 percent lower vs the Japanese yen at 111.20 as of 06:30 GMT on Thursday, with investors keeping an eye on upcoming economic data.

The greenback continued to dominate the pair’s dynamic on Wednesday as no news were released in Asian hours.

Today, Japanese industrial production for November came in at 0.5 percent, below an estimated 0.6 percent. This results played downwards for the yen.

The US dollar index, which measures the greenback against six major currencies, was trading 0.30 percent higher at 90.58 by the time of this writing.

US industrial production rose by 0.9 percent in December, above an estimated 0.4 percent build.

Ahead in today’s session focus will be at building permits and housing starts for December, as well as initial jobless claims and the Philly manufacturing index. All coming at 13:30 GMT.

As the Japanese currency continues to strengthen on the back of a weaker dollar, equity markets are starting fall under pressure as Nippon products might become more expensive, which is not good for the economy.

If this trends continues to develop, we could see a break below the 110 mark, which might open the doors to further losses. However, a modera upward correction is likely.

Fort Financial Services