USDJPY continues rallying and updating its highs.
The Japanese Yen is slowly retreating and remains rather weak against the USD on Tuesday. The current quote for the instrument is 109.17.
The statistics published in the morning turned out to be rather mixed and more minor than positive.
Household Spending dropped 6.1% y/y in January in Japan after losing 0.6% y/y in the previous month and against the expected decline of 2.1% y/y. The indicator perfectly shows the population spending in the country, that’s why this negative influence may later be applied to the retail sales as well. The indicator decline means that the Japanese population is very negative in its assessment of the country’s economic outlook and prefers to save money instead of spending it.
The Average Cash Earnings lost 0.8% y/y in January, which may be considered as a slight improvement because in December it dropped 3.0% y/y. However, a local stabilization here couldn’t influence the spending.
The Japanese GDP added 2.8% q/q in the fourth quarter of 2020, which is also worse than expected.
It’s pretty difficult for the Japanese economy to come out of the coronavirus crisis because it was weakened by domestic disbalance earlier.
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.