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Japanese industrial production dropped sharply in June, down 3.3% same period last year when the company cut production in response to the drop in consumer spending after tax increased consumption. Exports may not rescue the situation. These figures are the worst since the tsunami disaster in 2011, in contrast to neighboring South Korea, where the index of industrial production rose 2.9% in June last year. This poor performance has questioned the inflation target of the Bank of Japan and simply reaffirms my view that the Bank of Japan will act further to weaken the yen by the end of this year. The news is no immediate impact on USD / JPY in the long term but will push this currency pair continues to move higher. I still hold the view that reduction of the JPY
