Yen Put Strengthening On A Pause. Overview 19.07.2019


On Friday, the Japanese yen stopped its growth in the pair with the USD. The instrument is currently trading at 107.68.

In the morning Japan published the data on the basic inflation in June, that grew by 0.6% (counted yearly) against 0.8% the previous month. The statistics was in accordance with the forecasts; no one had expected any miracles here.

However, the current inflation level is the two years’ minimum, which may prone the Bank of Japan to additional economic stimulation of the economy. Earlier the BoJ already gave such signals, pointing at the possibility of softening the monetary and credit conditions; stimulation may increase by the end of July. This will become even more possible if the Federal Reserve lowers the interest rate on its session this month.

Inflation indices feel strong pressure because of the previous decline in oil prices as well. What is more, the prices for cellular services have also been decreased lately in Japan, which may have also lowered the basic value of the consumer price index.

The business index in all spheres of industry and service in Japan increased by only 0.3% (calculated monthly) in June, which is in accordance with the expectations but much lower than in May.


Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.