Japan published controversial economic reports on Friday. It is reported that the domestic production declined in July along with higher consumer spending and stable unemployment.
The industrial production declined by 1.2%(m/m) and 1.0% (y/y). The motor industry and electronics were the biggest losers.
According to the latest surveys, Japanese managers expect August to be slightly bullish (+0.1%) while September is expected to show a 3.3%delcine. The pessimistic expectations are connected with lower export orders.
July’s consumer spending gained 1.7% while the rate of unemployment stayed unchanged at 4.3%. Amid lower retail sales, economists are worried about consumer demand. The negative tendency is expected to continue as the Japanese authorities keep winding up numerous programs despite the fear of lower consumer spending which accounts for 60% of the Japanese GDP.
Forex.
According to , the Japanese Yen keeps strengthening against the US Dollar. The experts report that USDJPY is forming a downswing represented by wave А/В of level Daily.
A further downtrend (if the price breaks below 78.18) will probably meet support around 78.15 and 77.91. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 78.60 (as shown below).
