Despite the strong “greenback”, USDJPY has been slowly falling the entire week.
The Japanese Yen is retreating a little bit against the USD on Friday. The current quote for the instrument is 137.02.
The statistics published in the morning showed that the Tokyo Core CPI was 2.6% y/y in August after being 2.3% y/y and against the expected reading of 2.5% y/y.
At the same time, the Tokyo CPI ex. Food and Energy showed 0.6% y/y – market expectations implied 0.4% y/y.
The reports are considered leading indicators for the national CPI, because Tokyo is one of the major economic areas and its dynamics might have an impact on many other aspects.
Inflation has always been and still remains a major problem for Japan. This year, a global inflation boost helped the Japanese CPI reach positive territory, but the key contribution was made by energy and commodity prices, that’s why the current trend should be considered unstable. In the meantime, the Bank of
Japan is still sticking to its ultra-soft monetary policy to stimulate, among other things, prices. However, it’s proven to be rather ineffective.
Market players aren’t currently using the Yen as a “safe haven” asset – they are more interested in the news.
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.