The Yen is attacking. Overview for 07.02.2018

USDJPY is still very volatile; investors’ sentiment is constantly changing.

On Wednesday morning, the Japanese Yen started strengthening against the USD. The current quote for the instrument is 109.17.

Japan published several statistical reports today. The Average Cash Earnings added 0.7% y/y in December, which is better than expected. However, in comparison with the November reading (+0.9% y/y), the indicator slowed down.

One rather interesting fact: real income of the population in Japan are falling. In December, the indicator lost 0.5% after expanding by 0.1% the month before. The dynamics is quite unstable and mostly heading to the downside, which is not a good signal for Japan and the Yen.

The Leading Economic Index also didn’t provide enough support to the national currency. The indicator was only 107.9 points in December after being 108.3 points in November and against the expected reading of 108.1 points. The index helps to assess future activities in businesses and the country’s economy.

Despite such mixed statistics, the Yen is rising against the USD. This is happening mostly due to investors’ interest to the Yen as a “safe haven” asset during the current high market volatility period.

RoboForex Analytical Department