The Yen is stable on Wednesday. Overview for 08.02.2017

The USD/JPY pair is not too active during the Wednesday trading session; investors are responding to the weak statistics from Japan in different ways.

In the middle of the week, the Japanese Yen is barely moving against the USD after getting weaker yesterday and more expensive at the beginning of the week. The current quote for the instrument is 112.34.

According to the statistics published today, the Eco Watchers Survey Outlook in January was only 49.4 points after being 51.4 points in the previous month and against expectations of 51.9 points. The Eco Watchers Survey Current let down as well: in January it was just 49.8 points although it was predicted to be 51.9 points. The fact that both readings moved below the psychologically-crucial number of 50, which separates the growth from the decline, doesn’t inspire at all.

Also, today the country published the BoJ Summary of Opinions. According to the report, the inflation is keeping its momentum to reach the target at 2%, but inflationary expectations are very unlikely to increase significantly in the future. In other words, it means that once the BoJ “freezers” the QE program or decreases its volume, the CPI will stop accelerating. The report also contains the opinion that the inflation may grow when the commodity products prices fall. Well, there is something in this, but there are no reasons right now for implementing such scenario.

On February 10^th, there will be a meeting of the Japanese prime minister, Shinzō Abe, and the American president, Donald Trump. The major points of their conversation are already known: creating new jobs, fluctuations in the Yen, and Balance of Trade and Payments. Most likely, the market will disregard the results of this meeting unless the politicians say something really significant.

RoboForex Analytical Department