The yen continues to fall
28.05.2015
On Thursday afternoon, the USD/JPY pair is trading on the upside and continues to update seven-year highs.
The Japanese yen is now a perfect example of a currency outsider. In the five trading sessions, the yen has fallen to the minimum of a few years, but at this stage its weakening was not over. Minimums are updated daily and the long persistence of the "bulls" in the dollar/yen cannot be prevented.
Today's statistics could not hold back sales in the instrument. According to published data, in April retail sales in Japan rose by 5.0% y/y. Statistics confirm the thesis of the Bank of Japan that consumer spending is gradually recovering. This point is able to significantly support the strengthening of the Japanese economy, only if this observation is not a single moment of optimism.
If consumers are consistently spending, (earning income as stably) the economic system gradually feels this side of full support. Wage growth is present, and the prices of excise goods remain low.
Generally, the BoJ focuses on the private sector activity not for the first time. The authorities' program is aimed at stimulating the economy, and it operates on a global scale. However, there are layers of an economic system which it can not penetrate - and then the economy will be carried by the people.
The USD/JPY pair has a chance to test the 124.50 level, since the threshold of 124.0 was easy to succumb.
RoboForex Analytical Department
The Japanese yen is now a perfect example of a currency outsider. In the five trading sessions, the yen has fallen to the minimum of a few years, but at this stage its weakening was not over. Minimums are updated daily and the long persistence of the "bulls" in the dollar/yen cannot be prevented.
Today's statistics could not hold back sales in the instrument. According to published data, in April retail sales in Japan rose by 5.0% y/y. Statistics confirm the thesis of the Bank of Japan that consumer spending is gradually recovering. This point is able to significantly support the strengthening of the Japanese economy, only if this observation is not a single moment of optimism.
If consumers are consistently spending, (earning income as stably) the economic system gradually feels this side of full support. Wage growth is present, and the prices of excise goods remain low.
Generally, the BoJ focuses on the private sector activity not for the first time. The authorities' program is aimed at stimulating the economy, and it operates on a global scale. However, there are layers of an economic system which it can not penetrate - and then the economy will be carried by the people.
The USD/JPY pair has a chance to test the 124.50 level, since the threshold of 124.0 was easy to succumb.
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.