THE TAKEAWAY: Japanese consumer confidence falls to a 6-month low -> BoJ repeats economy starting to recover moderately -> Yen trading steady
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The Japanese Consumer Confidence Index fell to a six month low in July, according to the Cabinet Office. The confidence index was reported at 43.6, disappointing expectations for 45.0 and down from 44.3 in June. Income growth declined to 41.0 from 41.6 in June, and the willingness to buy durable goods fell to 44.0 from 45.5.
Additionally, the Bank of Japan’s monthly economic report for August again commented that Japan’s economy is starting to recover moderately. The report noted an improvement in consumer sentiment despite the above release and said that exports have been picking up.
The BoJ recently predicted 2.9% growth in 2013, and GDP rose 1.0% in Q1. The Japanese GDP growth for Q2 will be released on early Monday morning, and Bloomberg surveyed analysts predict 0.9% quarterly growth.
The Yen did not react significantly to either Japan release today, and USD/JPY continues to trade around 96.50 at the time of this writing. A rising trend line from February may provide support around 95.20, and resistance may be provided by a broken resistance line around 97.50.
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USDJPY Daily: August 9, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .