The Yen continues to retreat. Overview for 27.10.2017

The USD/JPY pair is trading to the upside and finishing the week close to three months’ highs.

The Japanese Yen is once again under pressure against the USD after several unsuccessful attempts to recover. The current quote for the instrument is 114.22.

The statistics published in the morning showed that the Core Inflation in Japan added 0.7% y/y, the same as before and expected. The Tokyo Core CPI expanded by 0.6% y/e - better than the expected reading.

The components of the report show that the major contribution was made by fuel (+6.0% y/y). Among others are medical care (+1.8% y/y) and food. On the other hand, clothing and footwear (-0.3% y/y) and several other parameters fell.

One should pay attention that the Tokyo inflation seems to be more “lively” than in Japan overall. The Tokyo indicator is usually considered as the leading one, so one can expect the overall Japanese inflation to get better in the next 6 months.  

Additional pressure on the Yen is put by investors’ small demand for “safe haven” assets. The USD is getting stronger against other traded currencies thanks to the “bearish rally” in the EUR/USD pair, which influences the Yen as well.

RoboForex Analytical Department