Japanese Yen Remains Cautious as Industrial Production Declined, but Likely to Strengthen
March industrial production, a key piece of data for BOJ economists, fell 0.9% on month after rising 0.7% rise in February, preliminary data released Friday by the Ministry of Economy, Trade and Industry showed. March's drop, outpacing the MNI median forecast of a 0.1% fall, was due mainly to lower output of motor vehicles, production machinery and fabricated metals, although output of electronic parts and devices rose. Retail sales y/y rose to 1% from 0,6% and CPI y/y rose to 0.5% from 0.4%, rose of the CPI is still far from BOJ Expectation from 2% but can be seen as positive.
Technical Analysis USDJPY still holds at the resistance level if the price can break below the 3/1 line, I expect the price to move towards 0.618 level of fibonacci retracement at 109.085.