THE TAKEAWAY: Japan Industrial Production revised to have increased in February -> Government expects 1% GDP rise in FY 2013 -> Yen trading steady
Japanese industrial production increased for the third straight month in February, according to a final release by the Ministry of Economy, Trade and Industry. Production rose 0.6% over the month, revised from a previous estimate of a 0.1% decline in production and up from January’s 0.3% rise in industrial production. Industrial production declined 10.5% from February 2012.
The Japanese economy saw unchanged GDP in the fourth quarter, following two quarters of economic decline. The government is predicting 1% GDP growth for the fiscal year that ended in March and 2.5% growth for fiscal year 2013. A rise in GDP in the first quarter of 2013 would probably be seen as Yen positive.
However, the Yen did not react significantly to the release. USD/JPY is trading below 98.00 at the time of this writing, down from a recent 4-year high at 99.94. Support might be provided around 97.50, by the bottom of a gap created between the fifth and eighth of April.
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USDJPY4-Hour: April 15, 2013