Japan November industiral production likely to decline

USD/JPY will be likely driven by the tug of war between USD and risk sentiments in the coming weeks. With USD strengthening putting pressure on the pair towards upward direction, the concerns on EM and deterioration in risk sentiment which is resulted in JPY multilateral appreciation.

Japan's inflation and activity data will be in focus, beyond these external factors, including November CPI, household survey and November IP. December core CPI is likely to rise.

"We expect the November household survey to show that real household spending dropped -2.2% y/y (consensus: -2.2%), marking the third consecutive month of decline. We look for November IP to have decreased -0.3% m/m after two months of increases", says Barclays in a research note.