The Japanese industrial sector saw higher business activity in November Analysts report that the growth was supported by higher domestic and external demand as well as the recent weakening of the Japanese Yen.
The index indicated 55,1 points during the reporting period, thereby indicating positive tendencies in Japan’s industrial sector. Analysts say this is the highest level since summer 2006. The index has been above 50.0 for 9 months in a row. This is the most profound and prolonged period of growth seen over the last 3 years.
The growth is mainly supported by higher industrial output. The figures have been increasing for 4 months and have already hit the highest level since 2009.
Another reason for the growth is bigger-scale orders maid higher demand. The sub-index indicating industrial orders has been growing for 9 months as well. As a result, the rate of employment is improving as well since higher production needs more workers.
Despite the positive tendencies in the Japanese economy, the Japanese Yen keeps weakening against the US Dollar. This is one of the major factors contributing to higher exports.
According to the experts of Masterforex-V Academy, USDJPY is currently developing the “Hound of the Baskervilles” pattern. 103.73 remains the key level of resistance along with the top of the sloping channel (as shown in the chart below). The uptrend of USDJPY will be completed as soon as he price overcomes the MF pivot at 96.56 and creates a bearish FZR.
