Forex: USD/JPY: Japanese consumer confidence slides to 41.3 from 42.5

on Jan 17, 2014
Updated: Oct 21, 2019
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_iNVEZZ.com: Friday, January 17th:_ At 05:00 UTC this morning, the Japan Cabinet Office released its Consumer Confidence Survey for December which showed that the index declined to 41.3 points in December from 42.5 in November, while analysts had been expecting a rise to 43.4.

Readings below 50 suggest consumer pessimism. The last time the index reached the 50-mark was in April 2006.
The Cabinet Office cut its assessment of consumer confidence, saying it is stalling, but kept its evaluation of consumer sentiment unchanged, stating it is in an improving trend.
The Japan’s government today upgraded its outlook on the nation’s economy for the first time in four months, reflecting strong private consumption and improving capital expenditure.

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The government also raised its assessment of consumer spending, for a second consecutive month, saying it is “increasing” with sentiment remaining positive and demand rising ahead of a sales tax hike in April.
In addition, with company profits and business conditions recovering, the government upgraded its view on capital spending for the first time in four months, saying it is picking up.

The government said that “the economy is recovering at a moderate pace”.
Janan’s Minister of State for Economic Revitalization Akira Amari said today that private capital spending is forecast to rise as corporate sentiment and earnings are improving.
He said that “other indicators are also looking up, so we can expect that capital spending will expand considerably”.

He added that firm private consumption reflects that households are feeling the strength of economic recovery, in addition to the effect of consumers’ rushing to buy ahead of the sales tax hike in April.

The USD/JPY yesterday initially rose to a one-week high at 104.91, but subsequently declined and ended the day with a 0.30 percent loss, closing at 104.28. Thus far today the price has been moving around the 200-hour simple moving average within the range 104.41 to 104.18 and is currently at 104.32.

A triangle pattern has been forming on the 1H chart since mid-yesterday and a breakout could test yesterday’s high or push the price further down.
The United States Census Bureau will release the December Building Permits and Housing Starts data at 13.30 UTC today. The Fed is due to announce the December Capacity Utilization Rate and the change in Industrial Production m/m at 14.15 UTC.
The University of Michigan is scheduled to publish its Preliminary Consumer Sentiment Index at 14.55 UTC, and finally, the Bureau of Labor Statistics will release the Job Openings and Labor Turnover Summary at 15.00 UTC.
Resistances today: 104.45, 104.80 and 105.00.
Supports: 104.25, 104.00 and 103.75.

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