Is the yen likely to weaken the dollar? New macroeconomic data from Japan

During today's Asian session we met macroeconomic data, mainly from Japan. There are neither good predictions nor optimistic readings. However, it is worth adding that after the weekend there will be many more. Will good information from the Japanese economy create a good growth field for the yen?

Consumers are slowing down

Today at 00:30 we learned the data from the Statistics Bureau of Japan report on household spending. It includes information on actual expenditure. It divides them into individual groups that relate to food, housing charges, utilities, clothing, footwear, medical care, education, recreation, culture and transport. The report is published monthly. Today's published value is -2,0% y / y. It is better than forecasts that predicted a "deeper" decline to -2,5% y / y. It is worth adding that the previous reading was -5,1% y / y. Therefore, Japanese farms have seen some progress. These data may not be very important in the market. However, they provide a certain opportunity to assess the current economic situation from the perspective of consumer purchases. We will know definitely more important and influential data after the weekend.

Next week, we will see, among others, readings from the current account balance nsa and sa. Values ​​estimated by analysts are similar to earlier publication. Very important data from the Japanese industry will be known only on Thursday. These are publications on a monthly basis, orders for equipment, machinery and equipment.

End of USD / JPY increases?

From December 26 last year, we observed a weakening of the dollar for several days, thanks to which Price USD / JPY dropped from 109,600 to 107,791. The entire downward movement was practically sucked out by the large supply of yen that hit the market quite recently - on January 6. Donald Trump pushed a lot of euphoria into the markets yesterday, hence the dollar remains fundamentally strong.

USDJPY chart, H4 interval. Source: xNUMX XTB xStation

Jen is currently in a bad technical situation to talk about his appreciation. However, the course is approaching strong resistance, which he could not break three times. Moving averages support USD / JPY to further increases. Due to the moment we are in and there is practically no test of recent increases, there is a good chance that the pair will fall into a small correction before the key level. The data that may support the appreciation of the dollar will be known before the weekend. It seems that the US currency is rising on the wave waiting for the NFP report. For the time being, there is no indication that the situation at the mouth would change drastically.