The USD/JPY pair is growing for the third day in a row; the Yen is weakening little by little, but it’s normally.
The Japanese Yen is trading downwards on Wednesday. The current quote for the instrument is 112.70. The pair is being bought for the third consecutive day. Step by step, the price is moving away from March’s lows. The fact that the Yen is weakening will support exporters, which means that the budget may feel a bit relief.
On Wednesday, the Japanese authorities worsened their assessment of economic factors, for the first time in five months. The government report says that local economy became less active. Signs of weakening in some areas of the country’s economic system result in worse assessment of the current situation. Overall, right now the situation in the Japanese economy is estimated as carefully as in autumn of 2014.
Domestic consumption remains weak; signs of weakening in the private consumption area may be the reason to revise perspectives. The same is about numbers of corporate profit: not many participants of the Japanese business find themselves quite stable.
At the same time, an overall economic foundation in Japan is considered “healthy”.
Decrease in investors’ interest in safe assets also plays important role. News from Brussels are already included into quotes of the tradable currency pairs, differences in commodity prices too. This week is quite calm and neutral as to markets reactions.
RoboForex Analytical Department
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