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Japan’s Economy Expand More Than Expected In First Quarter

Japanese economy grew more than expected during the first quarter, where Japan’s GDP showed unexpected growth supported by the reconstruction from last year’s earthquake that boosted public investment as well as consumer spending.

Japan’s GDP grew more than expected during the first quarter of year, where it recorded actual of 1.0% compared with a previous of -0.2% revised to 0.0%, while the expectations were 0.9%.

While annualized GDP in first quarter inclined actual of 4.1% compared with a previous of -0.7% revised to 0.1%, while expectations were 3.5%.

The strength of Japanese yen against the dollar since March may increase pressure on monetary policy makers of the Bank of Japan to add stimulus especially after the unexpected growth that the nation is witnessing.

Yesterday, Japan’s machine orders fell in March less-than-expected, as post earthquake reconstruction helped support growth in the world’s third largest economy.

Machine orders showed an unexpected decline by -1.1% in March compared to a year earlier, compared with the previous reading of 8.9% while expectations were of 3.9%.

Japan’s machinery orders is expected to swing depending on the timing of the major projects as it increases demand on machines during the project time, supporting the nation’s growth

Japanese companies and investors are still cautious about the nation’s outlook especially at a time when the yen is strengthening amid the global uncertainties

Today’s expansion in Japan’s economy will positively affect on the nation’s outlook especially amid the uncertainty of global monetary and political environments, where Japanese economy is expected to witness a rebound in many sectors during the upcoming period supported by raising in consumer confidence and spending

Article source: http://feeds.actionforex.com/~r/ActionForexall/~3/cCT30nVhKxU/

Tags: analysis, articles, charts, education, forex, learning, market

Japan Grow 1.0% In Q1 2012, Not A Concern To Consider Monetary Stimulus

The preliminary reading of 1.0% Q1 growth was pretty much in line with the 0.9% expectation. This y/y number is 4.1%. Reuters notes that this data should not concern Bank of Japan into considering further stimulus. This means, in risk aversion JPY will continue to be safe haven (especially if there is a slowdown in Asia, like one in China).

With the current stance of FOMC vs. BoJ, the USD/JPY should probably be in a range bound market. If it has found a bottom at 79.40, that might be support while the 2012 high at 84.16 might be resistance. The middle of this range is 81.78. If we consider the middle of a range to be “fair price” then there should be a tendency for the market to return toward this level as it trades toward range resistance or support.

This range bound scenario is shelved however if the market fails to push above the May high at 80.55, and continue below 79.40, which opens up the next key support in the 78.30-78.50 area

Article source: http://feeds.actionforex.com/~r/ActionForexall/~3/W1oH0v75FDU/

Tags: analysis, articles, charts, education, forex, learning, market