Japanese manufacturing sector still looks solid expansion in January despite a slight decline in December last. Introduction Japanese Manufacturing Activity Index are showing progress, indicating that the manufacturing sector continues to bergeliat amid economic growth that is not so favorable.
Markit Manufacturing PMI index for the Japanese Nikkei recorded in the number 52.6 in December, but fell into the range of 52.4 in January of this preliminary measurement. A reading above 50 indicates expansion of manufacturing activity, while a reading below 50 signal a contraction.
USD / JPY showed a slight increase from position to position 117.82 touched 117.59 before the report Japan's manufacturing index was released.
The operational conditions of factories in Japan to show its best performance since March 2014 in October and November respectively 52.4 and 52.6 in the numbers thus raising hopes of stronger external demand could lead to a better economic performance in the final quarter of 2015.
Japanese manufacturing sector has taken advantage of the rapid weakening of the yen in recent years and make domestic production more competitive and more profitable.
Yen Rises Again As Safe Haven Hunting
However, these conditions also contains a fairly high risk because in the middle of the fall in commodity and oil prices, investors will be abuzz seek safe-haven assets including the yen. The Japanese currency will be strengthened and it is this which squeezes export companies in the Rising Sun Country.
Bank of Japan (BOJ) also stated that it will tighten oversight of the oil price in relation to the inflation target of 2 percent set. The strengthening of the yen and the fall in oil prices will be the subject of their monetary policy meeting on 28 January.
Markit Manufacturing PMI index for the Japanese Nikkei recorded in the number 52.6 in December, but fell into the range of 52.4 in January of this preliminary measurement. A reading above 50 indicates expansion of manufacturing activity, while a reading below 50 signal a contraction.
USD / JPY showed a slight increase from position to position 117.82 touched 117.59 before the report Japan's manufacturing index was released.
The operational conditions of factories in Japan to show its best performance since March 2014 in October and November respectively 52.4 and 52.6 in the numbers thus raising hopes of stronger external demand could lead to a better economic performance in the final quarter of 2015.
Japanese manufacturing sector has taken advantage of the rapid weakening of the yen in recent years and make domestic production more competitive and more profitable.
Yen Rises Again As Safe Haven Hunting
However, these conditions also contains a fairly high risk because in the middle of the fall in commodity and oil prices, investors will be abuzz seek safe-haven assets including the yen. The Japanese currency will be strengthened and it is this which squeezes export companies in the Rising Sun Country.
Bank of Japan (BOJ) also stated that it will tighten oversight of the oil price in relation to the inflation target of 2 percent set. The strengthening of the yen and the fall in oil prices will be the subject of their monetary policy meeting on 28 January.
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