Global macro overview for 30/03/2016:
The Japanese Industrial Production data was released overnight. It turned out to be disappointing. According to the Ministry of Economy, industrial output plunged 6.2% in February from the previous month. The Japanese government expects that output will increase 3.9% this month and 5.3% in April. However, the largest automaker, Toyota Motor Corp, stopped production in the factories due to a problem with parts supplies stemming from an explosion at a steel maker Aichi Steel Corp. on January 8. In conclusion, even this random event suggests that industrial production is undermining economic growth in the first quarter. If Japan's GDP contracts again, that would be the sixth quarterly contraction and the second recession since Shinzo Abe returned as prime minister in December 2012.
Let's now take a look at the USD/JPY technical picture in the daily time frame. The market is still trading between two golden lines in the congestion zone. Neither bulls, nor bears are in control over the market right now. The next support is seen at the level of 110.06.
