The Yen is back to strengthening. Overview for 06.04.2017

After a short pause, the USD/JPY pair is falling again and trying to update its six months’ lows.

The Japanese Yen is back in the saddle and strengthening against the USD. After yesterday’s calm period and the pair’s failed attempts to reverse, on Thursday the downtrend came up with a bang. The current quote for the instrument is 110.52.

Today’s statistics published by Japan was positive. The Consumer Confidence in March increased up to 43.9 points after being 43.1 points the month before and against the expected reading of 43.5 points. It is usually considered that the indicator shows consumers’ attitude to the economic situation in the country. The bigger the reading, the better for the Yen.

Of course, the indicator is still below the psychologically-crucial level of 50 points, which separates the decline from the growth. However, the tendency is estimated as positive.

However, the inflation expectation in the country in March remain very pessimistic. For example, the Index fell to the seven months’ lows, which means that it’s difficult for people to perceive the BoJ’s measures for making the CPI more active. The inflation situation in the country is one of the most difficult problems, but there is no need to be afraid of the deflation as long as the QE program is working.

RoboForex Analytical Department