The yen is trading indistinctly

12.01.2016
On Tuesday morning, the USD/JPY pair has been quite active, but in the afternoon, there is barely any movement in the instrument.

The USD/JPY pair is inactive during the second half of the trading day on Tuesday. Investors considered the morning news from Japan and are preparing for the volatility of the evening. The current quotation of the instrument is 117.70. In recent years, the yen has significantly strengthened, and this fact is hardly pleasant to the exporters.

Speaking this morning, the Prime Minister of Japan, Mr. Abe said that currently there are no conditions in the economy to increase sales tax rates. This would be feasible if the economic indicators have returned to the levels of 2008 - to mass banking collapses in the United States, for example. The minister must now focus on creating alternative conditions under which it would be possible to resume a discussion of this question.

Of course, Japan would love to increase the volume of budget revenues due to the inflow of money from this tax. However, so far it looks difficult to achieve.

Data on the balance of payments of Japan for November 2015 turned out to be quite good, and the surplus grew. The market has not particularly responded to these statistics. For investors global matters are now more important - what China will do to stay afloat, and how soon the US will repeat the rate increase. The yen strengthened enough to quickly return to the December lows, if suitable conditions will develop.
 
RoboForex Analytical Department

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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.