The Yen is retreating. Overview for 08.02.2022

USDJPY rose after consolidating for several trading sessions.  

The Japanese Yen dropped a little bit against the USD on Tuesday. The current quote for the instrument is 115.35.

Global capital markets are well-affected towards risks and that reduces the demand for the Yen as a “safe haven” asset.

According to the data released earlier today, Household Spending in Japan lost 0.2% y/y in December after dropping 1.3% y/y in November. It’s a good result, although it’s a bit worse than expected. As a rule, this report is perceived as preliminary inflation data. It seems like the Japanese population finally started spending money in late 2021. If so, that’s great news. 

The Average Cash Earnings lost 0.2% y/y in December after adding 0.8% y/y the month before. 

The Bank Lending expanded by 0.6% y/y in January, the same as in December. 

As a rule, the Yen barely responds to the statistics. On the other hand, markets are currently sensitive to risks, that’s why the demand for the Yen is falling.