Japanese Preliminary Industrial Production Plummets To A New Low

Japanese Preliminary Industrial Production Actual -9.6%, Expected -8.9%, Previous -8.5%

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 for December plummeted to a new low for a second consecutive month. The report indicates that production has fallen to 9.6 percent from one month earlier. The Japanese ministry of Economy, Trade, and Industry has reported that production fell 20.6 percent year over year in December.

Forex Technical Reaction: The yen has weakened slightly from these simultaneous releases and has traded its way below the neutral LFB pivot point which is situated at 90.05. The pair is currently trading at 89.94.

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