Article by Investazor.com
USDJPY had a great Friday and managed to close the week on green. The quotation stopped at resistance level from 102.80 after the whole week was on the downside. The macroeconomic data from Japan was predominantly good. The retail sales y/y beat the expectations while the unemployment fell from 3.7% to 3.6%. However, the household spending y/y was published way below the expected value, an aspect the markets did not ignore and it prompted some concerns.
The explanation for the appreciation of the Japanese yen in the first part of the week would be the geopolitical conflict between the US and Russia, a type of situation that encourages investors to buy safe haven assets. Also, you should take into consideration the reaction of the markets, which suggested through the price action that they are not so scared anymore of a war and hope that the tensions will be over and the two historic giants will make peace.
Economic Calendar
Manufacturing PMI (12:15 GTM)-Monday. It is a leading indicator of economic health and basically it is an index based on surveyed purchasing managers in the manufacturing industry. Above 50.0 indicates industry expansion whereas below indicates contraction. Last month the actual published value was 55.5.
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