The Yen is getting cheaper. Overview for 20.04.2018
On Friday, USDJPY is trading upwards; the statistics provided no support to the Japanese currency.
The Japanese Yen is falling against the USD on Friday afternoon. The current quote for the instrument is 107.67.
In the morning, Japan reported on the National Core CPI, which was only 0.9% y/y in March. The actual reading matched the expected one, but both of them are worse than the indicator was in the previous month, 1.0% y/y. The Inflation Rate increased up to 1.1% y/y, which is also worse than it was in February, 1.5% y/y.
As a result, the Consumer Price Index remains one of the most important issues in Japan, which is very difficult to solve. Market expectations relating to the inflation in the country implied growth of the indicator based on increased prices on fuel and food products. As before, the target for the inflation set by the Bank of Japan is 2%.
The Japanese regulator will have to continue the QE program until the inflation reaches stability and stops changing directions. However, it may take months.
Another report from Japan, the Tertiary Industry Index, didn’t change in February after losing 0.4% m/m in January and against the expected reading of +0.1% m/m.
RoboMarkets Analytical Department
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is intended for our customers, and is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.