Investing.com - Following the release of several Japanese economic data points, the U.S. dollar is trading slightly lower against the yen in Monday’s Asian session.
In Asian trading Monday, USD/JPY is lower by 0.01% at 82.49. Next support for the pair is 82.46 followed by 82.432. Next resistance is 82.5125 followed by 82.537.
Earlier today, Japan’s Cabinet Office said third-quarter GDP contracted by 0.9%, the same rate as the previous quarter. Economists expected the world’s third-largest economy to shrink 0.8% in the third quarter.
Additionally, the Ministry of Finance said that Japan’s Current Account rose to a seasonally adjusted 0.41T, from -0.14T in the preceding month. Analysts had expected Japan’s Current Account to rise 0.25T last month.
Elsewhere, Japan’s Business Index Survey of large manufacturing conditions unexpectedly tumbled in the third quarter to a seasonally adjusted annual rate of -10.3, from 2.5 in the preceding quarter. Analysts had expected BSI large manufacturing conditions to rise to 4.3 in the last quarter.
The latest GDP number could be a sign that Japan is once again mired in a recession, albeit a small one. The report could also be the ammunition needed for the Bank of Japan to engage in further monetary easing aimed at depressing the yen. Japanese exporters are feeling the impact of a lethargic global economic recovery and could use the benefit of a weaker currency while waiting for demand to pick back up.
Remarks made by Deputy Governor Kiyohiko Nishimura last week point to the possibility of further monetary easing when the central bank meets later this month.
Elsewhere, EUR/JPY was lower by 0.2% at 106.45 while AUD/JPY was off 0.19% at 86.37. GBP/JPY was lower by 0.13% to 132.17 while CHF/JPY slipped 0.12% to 88.17. The Canadian and New Zealand dollars were both stronger against the Japanese yen, gaining 0.09% and 0.01%, respectively.
In Asian trading Monday, USD/JPY is lower by 0.01% at 82.49. Next support for the pair is 82.46 followed by 82.432. Next resistance is 82.5125 followed by 82.537.
Earlier today, Japan’s Cabinet Office said third-quarter GDP contracted by 0.9%, the same rate as the previous quarter. Economists expected the world’s third-largest economy to shrink 0.8% in the third quarter.
Additionally, the Ministry of Finance said that Japan’s Current Account rose to a seasonally adjusted 0.41T, from -0.14T in the preceding month. Analysts had expected Japan’s Current Account to rise 0.25T last month.
Elsewhere, Japan’s Business Index Survey of large manufacturing conditions unexpectedly tumbled in the third quarter to a seasonally adjusted annual rate of -10.3, from 2.5 in the preceding quarter. Analysts had expected BSI large manufacturing conditions to rise to 4.3 in the last quarter.
The latest GDP number could be a sign that Japan is once again mired in a recession, albeit a small one. The report could also be the ammunition needed for the Bank of Japan to engage in further monetary easing aimed at depressing the yen. Japanese exporters are feeling the impact of a lethargic global economic recovery and could use the benefit of a weaker currency while waiting for demand to pick back up.
Remarks made by Deputy Governor Kiyohiko Nishimura last week point to the possibility of further monetary easing when the central bank meets later this month.
Elsewhere, EUR/JPY was lower by 0.2% at 106.45 while AUD/JPY was off 0.19% at 86.37. GBP/JPY was lower by 0.13% to 132.17 while CHF/JPY slipped 0.12% to 88.17. The Canadian and New Zealand dollars were both stronger against the Japanese yen, gaining 0.09% and 0.01%, respectively.