TOKYO The Japanese yen's recent rise against the dollar has defied conventional market wisdom, but a stronger currency may actually support Japan as it confronts the Trump administration on matters of trade and foreign exchange.
The Japanese Yen was steady on Friday despite news of some weakening in business confidence. The Business Sentiment Index for all industries came in at 1.3 for this year's first quarter, according to the Ministry of Finance.
Today the Japanese Yen futures were on the Sell Short day of the Taylor Trading cycle. Following yesterday's rally into a new high for 2017, the Yen was a market to keep an eye on today for a trade opportunity.
Investor sentiment continues to push the US Dollar higher versus the Japanese Yen as expectations grow that the Federal Reserve could be on the verge of pushing through an interest rate hike later this month.
USDJPY: Retail trader data shows 66.7% of traders are net-long with the ratio of traders long to short at 2.01 to 1. In fact, traders have remained net-long since Jan 09 when USDJPY traded near 116.998; price has moved 2.0% lower since then.
The Japanese Yen fell then rose again against the US Dollar on Tuesday after a mixed set of key economic data. Japan's preliminary official industrial production was down 0.8% in January from February.