Japanese Yen Edges Lower Against US Dollar Ahead of Retail Sales Data

The Japanese yen edged lower against the US dollar on Monday, after moving in and out of the negative territory multiple times today. Traders are keeping a close eye on two economic releases in Japan that are due to be released today, which could lend the yen more support.

Japan’s Ministry of Economy, Trade, and Industry will release its preliminary reading for industrial production in January today, along with its report for retail sales for the same month. Consumer spending has weakened in Japan as the yen became weaker, which on the other hand supported exporters and raised expectations of stronger exports.

Meanwhile in the United States, a report from the National Association of Realtors earlier today showed a 2.8% drop in pending home sales last month. Another report said that new orders for durable goods manufactured in the United States gained 1.8% in January, according to the US Census Bureau.

The US Bureau of Economic Analysis is due to release its preliminary gross domestic product data tomorrow. Traders will also closely follow the speech of US President Donald Trump tomorrow in front of Congress, which is expected to contain details of his plans to cut corporate taxes in the world’s biggest economy.

USD/JPY traded at 112.75 as of 18:55 GMT on Monday, the pair’s strongest level since February 24, from 111.97 at 16:50 GMT. USD/JPY opened trading this week at 112.13.

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