On Friday morning, USDJPY is falling; investors are buying “safe haven” assets.
The Japanese Yen is getting stronger against the USD at the end of the week. The current quote for the instrument is 107.11.
The statistics published by Japan in the morning were rather mixed. The labor market looks quite good but still shows some signs of instability. The Unemployment Rate was 2.6% in April after being 2.5% the month before and against the expected reading of 2.7%. The Consumer Confidence recovered up to 24 points in May after being 21.6 points in the previous month. It’s better than expected, and that’s a good signal.
At the same time, the April number on the Industrial Production showed -9.1% m/m in April after being 3.7% m/m in March and against market expectations of -5.5% m/m. The Retail Sales lost 13.7% y/y after decreasing by 4.7% y/y the month before and against the expected reading of -11.2% m/m.
The Housing Starts showed 12.9% y/y, which is also worse than expected.
Of course, all these declines can be easily explained by the coronavirus pandemic and the population’s cautious attitude to spending money. Japanese have been very careful with their money recently because the country’s economy has had troubles for more than a month. And now the situation is aggravating.
Growth in demand for the Yen can now be explained only by market players’ strategy to buy “safe haven” assets because it’s quite unclear how and when global economies are going to come out of a recession.
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.