USDJPY is falling during the last trading session of this week. The reasons are some strong statistics from Japan and the weak “greenback”.
The Japanese Yen is slowly strengthening against the USD on Friday morning. The current quote for the instrument is 108.84.
This morning, Japan published a lot of important macroeconomic reports. First of all, one should pay attention to the labor market: the Unemployment Rate plunged from 2.9% in February to 2.6% in March. The reason for that might be active stimulus programs on different levels, from the country’s government to the Bank of Japan.
The Industrial Production in Japan, according to preliminary estimations, added 2.2% m/m in March after losing 1.3% m/m in February. Of course, it might be a correction after the weak data but the indicator was expected to decline, which means that the sector is recovering.
However, not everything is so positive. For example, the Tokyo Core CPI, which is considered a leading indicator for overall inflation in Japan, showed -0.2% y/y in April after being -0.1% y/y in March. Weak inflation is the major headache of the Japanese regulator and government. The indicator still can’t build a stable uptrend, although the latest forecasts from the BoJ were quite optimistic.
The Consumer Confidence dropped to 34.7 points in April after being 36.1 points the month before. The weak reading might have been caused by an increase in the number of new coronavirus cases in the country, which might hint and the third pandemic wave. Consumers are expectedly becoming less active, thus influencing their confidence.
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.