The Japanese economy gained 0.3% in Q4 2013. The data is provided with a glance at seasonality. The data matched the previous report in Q3 2013. Therefore, expert forecasts failed.
According to the survey conducted by Reuters, the Japanese GDP should have gained 2.8% in 2013 but the actual figures were much lower – just 1% over the reporting period. At the same time, private foreign investments in the Japanese economy increased by 1.3% during the same reporting period.
Amid such weak economic data, the Japanese Yen gained some value against the US Dollar. At this time, USD/JPY is trading around 101.65.
As far as Nikkei 225 is concerned, the recent gains of the Japanese index were almost offset by the latest decline. At this point, the index is recovering again. It has gained 0.35%. It seems like the optimistic external sentiment is currently dominating the market.
Meanwhile, the Japanese Yen keeps strengthening against the US Dollar as USD/JPY continues its mid-term downtrend. The closest major level of support is 100.75. Still, if the price reverses and starts recovering (thereby indicating the weakness of the Japanese currency), it may encounter resistance at 102.69 and the MF sloping channel.
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