The Yen remains expensive. Overview for 07.09.2017

On Thursday, the USD/JPY pair is trading to the downside; the market is preparing for the volatile evening.

The Japanese Yen is strengthening against the USD on Thursday. The current quote for the instrument is 108.96.

Today’s statistics showed that the Leading Indicators Index in Japan decreased up to 105 points in July after being 105.9 points the month before and against the expected reading of 105.1 points. As a rule, the Index describes the health of the country’s economy in the short-term. In this case, the decrease was very small, but if the tendency continues, it won’t be positive for Japan at all.

On these days, the market is following the Eastern Economic Forum, which is attended by Shinzō Abe, the Prime Minister of Japan. Parties have already discussed possible expansions of mutual trade and economic relations, but they keep going back to the geopolitics due to the North Korea situation.

In addition to that, investors are very interested in the results of the September ECB meeting. One should carefully listen to any comment from Mario Draghi relating to the regulator’s evaluation of the Euro (he may tell that the Euro is overbought) and the future of the QE program. The market is expecting from this meeting more than ever. Late in the afternoon, the market may get more volatile and, as a result, the Yen may strengthen.

RoboForex Analytical Department