The Japanese economy grew by 0.3% in the third quarter of 2017, lower than 0.4% that was expected. It is also below 0.6% seen in Q2. Year over year, the world’s third-largest economy advanced by only 1.4%, also falling short of expectations.
The positive twist is that the economy grew by seven straight quarters in a country which sees occasional dips in its economy. This is the longest streak in over a decade. Nevertheless, the miss on the headline grabs the headlines.
But how is the yen reacting? It is actually rising. The yen remains the No. 1 safe-haven currency – the destiny of choice in times of trouble.
The Japanese stock market is falling, some 1.6% on the Nikkei. So are other stock markets and also commodity prices. The yen is sought after in such cases.
USD/JPY is slipping under the 113 level, the lowest since October 20th. Further support awaits at 111.50, a trough seen in October. Further support awaits at 111. Resistance is at 114.50. A false break of this level was followed by the recent downfall.
More: USD/JPY: Still The Best Vehicle To Play US Tax Reform;Get the 5 most predictable currency pairs