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Home / Analytics / Forex analysis & forecasts / Forex Fundamental analysis / The yen stopped growing. Overview for 15.02.2016
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The yen stopped growing. Overview for 15.02.2016

The USD/JPY pair is gradually restoring positions after a series of February sales.

The Japanese yen has ceased to grow after a two-week rally. The current quote in the USD / JPY pair is 113.92. The February minimum is located at around 110.97.

Data on GDP of Japan for the fourth quarter of last year came out today. Japan's economy contracted by 0.4% q/q, after growth of 0.3% q/q in the previous quarter. The yearly rate fell by 1.4%. The components of the report draw attention to the GDP deflator, which grew by 1.5% in the fourth quarter with the forecast of growth by 1.8%. This component can clarify some future steps the Bank of Japan in respect of regulating inflation.

The weaker the momentum in Japan's economy, the worse the situation for the Japanese yen. Now the tension in tandem with the Japanese currency needs to be brought down - an expensive yen hurts the positions of exporters who already are in a difficult situation due to the drawdown of external demand.

Industrial production in Japan for December dipped by 1.7% m/m (-1.9% y/y). The index of business activity in the non-manufacturing sector fell by 0.6% in December 2015.

Apparently, the situation in the Japanese economy is still far from stable - if in inflationary momentum there is still something going on at the expense of the tremendous efforts of the Central Bank, then the problems in other sectors are barely addressed or solved.
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