Market Leader reports that the Bank of Japan expects an industrial production decline in April-June 2015 after 3 months of positive dynamics amid weak consumption figures coming from Asia.
The industrial production output increased by 1,5% in Q1 2015 as opposed to Q1 2014. This is an indication that the Japanese economic growth is accelerating. By the way, Japan is the world’s 3rd biggest economy.
However, the Bank of Japan still pursues the same course. In particular, the latest report reflecting the result of the recent BOJ meeting shows that the central bankers decided to leave their money-and-credit policy unchanged amid a consumer price slowdown in Japan.
In deed, Japan is seeing an inflation decline which makes the Bank of Japan predict zero consumer price growth this year. This zero performance was caused mainly by tax hikes. However, it should be noted that on calculating the index, they didn’t take into consideration food and fuel prices. Still, if to consider the tax hikes that took place last year, the current consumer inflation may well turn out to be close or equal to zero. For instance, the figures were equal to 2,2% and 2% in March and April 2015 respectively.
As for the Japanese Yen, it keeps on trading within the scope of a retracement from the long-term trend against the U.S. Dollar around the level of 123,65, Masterforex-V Academy reports. The closest major level of resistance is located close to the 124.44 pivot while the122.47/45 lows and 122.36, 122.05/01, 121.72/54 are treated as the most relevant levels of support at this point. This is confirmed by the chart below, courtesy of Masterforex-V Academy.
