USD/JPY is almost unchanged on Monday, as USD/JPY is trading in the mid-120 range. There are no Japanese or US releases on Monday. On Saturday, Prime Minister Abe announced a JPY 3.5 trillion stimulus package aimed at boosting the struggling economy.
Japanese Prime Minister Shinzo Abe has wasted little time in tackling the country’s economic woes, after winning the election earlier this month. On Saturday, Abe unveiled a stimulus program worth JPY 3.5 trillion. The program aims at reviving consumer spending, which has been sluggish since a sales tax hike back in April. The government expects the scheme to add 0.7% to GDP, which has contracted for two straight quarters, as the economy is officially in recession.
With US and European markets closed on Thursday, the spotlight shifted to Japan, which released a batch of key events. Tokyo Core CPI, the key inflation indicator, edged down to 2.3% in November, matching the market forecast. However, the indicator continued a worrying downward trend, dropping for a fourth straight month. Consumer demand remains weak, as Household Spending posted a sharp decline of 2.5%. Retail Sales posted a gain of 0.4%, but this was well short of the forecast of 1.2% and the weakest showing since June. There was no relief from the manufacturing front, as Preliminary Industrial Production fell by 0.6%, well short of the estimate of a 1.0% gain. The weak numbers paint a grim picture of the health of the Japanese economy as we head into 2o15.
USD/JPY for Monday, December 29, 2014
USD/JPY December 29 at 14:00 GMT
USD/JPY 120.47 H: 120.60 L: 120.17
- USD/JPY has shown little movement in the Asian and European sessions, as the pair continues to put pressure on resistance at 120.63.
- 120.63 is a weak resistance line. 121.39 is stronger.
- 119.83 is an immediate support level. 118.69 is stronger.
- Current range: 119.83 to 120.63
Further levels in both directions:
- Below: 119.83, 118.69, 117.94 and 116.69
- Above: 120.63, 121.39, 122.18, 124.16 and 125.72
OANDA’s Open Positions Ratio
USD/JPY ratio has a majority of long positions, indicative of trader bias towards the dollar breaking above range and posting gains.
* There are no Japanese or US releases on Monday.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.