The Yen continues to retreat. Overview for 31.03.2017

The USD/JPY pair is trading to the upside in response to several statistical reports published by Japan.

At the end of the trading week, the Japanese Yen is still being corrected against the USD. The current quote for the instrument is 111.87.

The Core Inflation Rate in Japan in February expanded by 0.2% y/y after adding 0.1% y/y the month before and against expectations of 0.2% y/y. The Tokyo Core CPI in March lost 0.4% y/y against expectations of -0.2% y/y. As a result, the Japanese inflation is slowing a bit. On MoM, the CPI decreased by 0.1%. The Tokyo indicator, which is considered as a leading indicator, is a bit troubling and means that in future the CPI may fall everywhere.

The Preliminary Industrial Production in February increased by 2.0% m/m after losing 0.4% m/m in the previous month and against expectations of 1.4% m/m. As a rule, the better the Industrial Production reading, the healthier the country’s economy. After analyzing the current data, the Ministry of Economy said that the activity in the sector was increasing.

The Household Spending in February plummeted by 3.8% y/y after losing just 1.2% in January and against the expected reading of -1.6% y/y.

In other words, the Japanese statistics remains rather mixed. Usually, declines during the month are corrected the next month, but it’s doesn’t prevent the overall picture from being pretty alarming.

RoboForex Analytical Department