Japan Leading Index Reaches a 6-Year High, Little Yen Reaction
THE TAKEAWAY: Japan Leading Index rises to 105.9 -> Yen traders may be keeping focus on the inflation rate -> USD/JPY continues to trade above 100.00
The Japan Leading Index of business cycle indicators hit a six year high in May, but failed to move the Yen significantly. The Leading Index was reported at 110.5, beating expectations for 101.3 and higher than the revised 107.7 index level reported in April. The coincident index was reported at 105.9, up from a revised 105.1 in April.
The index might have failed to raise the Yen because of the focus on the BoJ’s mission to raise inflation to a 2% inflation target over two years, which may be drawing attention away from economic growth.
The Yen continues to trade around 100.25 against the US Dollar at the time of this writing, and the pair may see support by the key 100.00 line. USD/JPY may see resistance by a four year high recently set at 103.73.
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USDJPY Daily: July 5, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to bbspier@fxcm.com .
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