Trade Desk Thoughts - Japanese Preliminary Industrial Production

Japanese Preliminary Industrial Production Actual 0.9%, Expected -0.5%, Previous -2.2%

Release Explanation: This report is a preliminary leading indicator of an economy’s health. Industrial production measures the volume of items produced in Japan’s mining and manufacturing industries and tends to react quickly to the ups and downs in the business cycle. For these reasons industrial production is considered a reliable leading indicator that conveys information about the overall health of the Japanese economy.

Trade Desk Thoughts: Industrial Production in July increased 0.9% from the previous month, showing an increase for the first time in two months. Industries that greatly contributed to the increase were transport equipment and electrical machinery. According to the Survey of Production Forecast in Manufacturing, Production is expected to decrease 2.9% in August and to increase 3.4% in September.

Forex Technical Reaction: The yen is currently entangled in its 20 day SMA as it has been for the past seven trading days. The pair has also failed to break above R1 or below S1 for the past four days.

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.