Japan’s Industrial Production for February came out at 2.8% for the preliminary Year on Year result, below the expectation of 4% and the previous result of 3.5%. The Preliminary Month on Month result came out at 0.4%, well above a negative expected value of -0.1%.
The release of the data saw a slight shift from the so far relatively smooth trading that the USDJPY has experienced throughout the Asian session, gaining some 6 pips to reach a new 2 and a half week high of 82.52. The US Dollar has been gaining in recent days against the Japanese Yen, climbing some 90+ pips since yesterday’s European session and breaking past a key resistance level of 81.93 which was the 55-Day exponential moving average. The next resistance level for the pair is seen at the March 11th high of 83.28.
The Industrial Production measures the current outputs of Japan’s factories and mines and as such is an important indication with regards to strength in the manufacturing sector. A higher than expected reading will generally act bullishly for the JPY.