The Yen is weakening. Overview for 08.06.2021

USDJPY is slowly rising on Tuesday; investors are monitoring the news. 

The Japanese Yen reversed against the USD and is falling on Tuesday morning. The current quote for the instrument is 109.47.

The statistics published by Japan in the morning were rather mixed. For example, the Bank Lending added 2.9% y/y in May after expanding by 4.8% y/y in April and against the expected reading of 5.6% y/y. A slowdown may be caused by the cautiousness of both businesses and consumers. 

The Average Cash Earnings in Japan added 1.6% y/y in April after expanding by 0.6% y/y the month before and against the expected reading of 0.8% y/y. This is good news – a growth of the indicator will help households to spend more money. 

The final GDP estimate for the first quarter of 2021 showed -1.0% q/q, which is better than both the expected reading (-1.2% q/q) and the previous estimate (-1.3% q/q). The Japanese economy is still fighting the pandemic consequences and deflation, which influence the GDP parameters. 

The Economy Watchers Sentiment dropped to 38.1 points in May after being 39.1 points the month before. However, it is still better than the expected reading of 33.9 points. 

The news is rather mixed and the Yen remains under slight pressure but USDJPY may change its direction later in the afternoon influenced by the statistics from the USA.