The industrial sector of the Japanese economy this past month was reported as seeing growth well below forecasts after an industry activity report highlighted the sluggishness. The Japanese All Industries Activity measure was expected to show a 1.9% growth in output and demand in the Japanese industrial sector; actual results were posted as 1.5%.
The downturn only underlines what many traders already knew about the Japanese economy; mainly, that it has been experiencing a rather steady decline since March. Hopes for a rebound were seen growing these past few trading days and today’s industry activity report likely does not upset such optimism. The JPY is still affected more by risk aversion and as it is expected to grow this week, traders may look to be going long on the yen.
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