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Explaining why the USD/JPY is pressing closer to 151.95 this morning

Further to earlier updates here on the USD/JPY and major Yen crosses (namely the EUR/JPY), there are good reasons to explain the current Yen weakness. The latest PPI data from Japan released very late yesterday showed no signs of price pressure. In fact, it was the opposite, as producer prices fell by 0.4% in October, where a zero reading was expected. Add that to another slump in yearly machine orders (down 20.6%) and you have a couple of good reasons to explain why the USD/JPY is pushing ever closer to the 2022 high, at 151.95. Now, tomorrow evening (at 11.50pm GMT) we will get the latest Japanese GDP report and if that is weak, then it will underscore the latest moves in the Yen, especially of there are signs of a significant slowdown in the Japanese economy. So, the USD/JY has now reached yet another new 2023 high not long ago, at 151.86. It is right now at 151.79 and it will be interesting to see if it can make it past 151.95 and if it does, how the ensuing price action will unfold 

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