Japan: All Industry Activity Index grows 1.8% in April slightly below expectations

FXstreet.com (Córdoba) - The All Industry Activity Index grew 1.8% in April against a 0.8% decrease the previous month, but the increase did not meet expectations around a 2.0% rise. This is the highest climb in the last 3 months.

The All Industry Activity Index released by the Ministry of Economy, Trade and Industry captures the monthly change in overall production by all industries of the Japanese economy. The index indicates the Japanese GDP and the overall growth figures, providing insight into current levels of Japanese economic expansion. Normally, a high reading is seen as positive (or bullish) for the JPY, while a low reading is seen as negative (or bearish).

All Industry Activity Index (MoM)

1.8%

Actual

2.0%

Consensus

-0.8%

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Forex: Yen weakens on risk appetite environment

FXstreet.com (Córdoba) - Asian bourses are in green today with the Nikkei over 2% higher. Yen crosses are rising on a renewed risk appetite mood after Chinese central bank announced that it would increase exchange rate flexibility after its two-year peg to the Dollar.

USD/JPY opened lower on Monday at 90.30 and reached a fresh 3-week low at 90.18 before bouncing. USD/JPY quickly began to move higher filling the opening gap. The pair went as high as 90.94 but was capped at that level and is currently at the 90.80 zone, 0.55% above its opening price.

EUR/JPY started the week at 112.42 slightly above its Friday's closing price and, despite that at the beginning of the day the pair moved down, it rebounded at the 112.10 support area recovering more than 80 pips. Currently EUR/JPY is quoting close to daily highs at 112.90, 0.43% above its initial price.

GBP/JPY opened the session at its NY close but heading north. The Pound has consolidated gains for over 100 pips against the Yen so far and is currently trading close to Friday's high at the 135.10 zone.