THE TAKEAWAY: Japanese housing starts rise 3.0% from February 2012 -> Japanese government expects 1% growth in FY2012 -> Yen trading steady
Annual Japanese housing starts increased at the slowest rate in 6 months in February, according to the Ministry of Land, Infrastructure, and Transport. Housing starts rose 3.0% from February 2012, better than an expected 1.8% decline in housing starts and worse than the 5.0% annual rise in housing starts in January.
Annualized housing starts totaled 0.944 million Yen, and construction orders were up 16.3% from February 2012, following a 3.7% annul decline in construction orders in January.
The Japanese economy saw unchanged GDP over the fourth quarter 2012 following two straight quarters of declining GDP, and the government recently predicted 1% growth for fiscal 2012, which ends at the finish of this month. Both fiscal and monetary stimulus has been implemented recently to help Japan climb out of the recession. Signs of improved economic performance are Yen positive.
However, the better than expected release had little affect on Yen trading in Forex markets. USD/JPY is trading slightly above the 94.00 level at the time of this writing, and support may be provided at 93.78, by the 50% Fibonacci retracement of the rise from February’s low to March’s high.
USDJPY 4-Hour: March 29, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .