At the beginning of the new week, the USD/JPY pair is trying to continue its growth, but investors have no ground for it so far.
The Japanese Yen is still under the moderate pressure – due to the oncoming meeting of the USA FOMC, the US Dollar is strengthening and “safe haven” assets are in greater demand. The current quote for the USD/JPY pair is 106.12.
The Japanese government published its quarterly progress report today. The report says that the country’s authorities are witnessing moderate and gradual recovery of the national economy. The government hasn’t changed its assessment of the state of the economy (it’s good), but the assessment of the confidence in future has been worsened (it’s rather negative for capital markets). The brexit has been mentioned here as well, no wonder: the Cabinet of Ministers of Japan has mentioned the increasing uncertainty due to the United Kingdom’s plans to exit the European Union.
Today’s statistics showed that the index of coinciding indicators in Japan in May decreased up to 109.9 points against 112.0 in April. However, the report published at the beginning of the month featured the number of 110.5 points. The revised indicator doesn’t look too attractive. Taking into account that the indicator may be considered as a “combined signal” to describe the national economy health, one can say that the situation in Japan worsened a bit. If the economic activity is slowing down, there is nothing good in it. However, it’s still not critical.
Over the next several days, the Japanese Yen will remain very sensitive to the fundamental background and investors’ sentiments. Two-day meeting of the USA FOMS will start on Tuesday and be over during the late Wednesday evening; market players will be very interested in Janet Yellen’s comments relating to the regulator’s future fiscal actions.
RoboForex Analytical Department
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