Statistics do not worry the yen
30.01.2015
The USD/JPY pair is kept steadily in the middle of the lateral band, and this resilience delights. The yen always evaluates statistics in its own way.
This morning the USD/JPY pair is getting a bit weaker, but still remains almost in the middle of the mid-term side channel.
Morning data showed that inflation in Japan in December retreated to a minimum of one and a half years and slipped by 2.5% m/m. In January, the base CPI, a kind of leading indicator gained 2.2% y/y, but it is below the December estimates of 2.3%.
Falling inflation did not enter into the plans of the Bank of Japan. All that has been done for the last two years as part of a mass stimulating the local economy, was with the main purpose of a stable support of the economic system. Inflation target for the Bank of Japan and the Cabinet remains the same, at 2%. Let me remind you that the fight against deflation, which hung over the Japanese economy for 15 years, is worth a lot of money to the state.
At this time the weakening of inflation, of course has an objective reason: energy prices are falling, and this will affect the CPI. The higher the inflation, the more chances for the yen and GDP to strengthen.
The medium-term perspective on the USD/JPY pair still remains unchanged - a sustainable outset and nothing more. However, you should pay attention to any comments of the monetary authorities of Japan regarding this inflationary peak - you never know how expectations may change.
RoboForex Analytical Department
This morning the USD/JPY pair is getting a bit weaker, but still remains almost in the middle of the mid-term side channel.
Morning data showed that inflation in Japan in December retreated to a minimum of one and a half years and slipped by 2.5% m/m. In January, the base CPI, a kind of leading indicator gained 2.2% y/y, but it is below the December estimates of 2.3%.
Falling inflation did not enter into the plans of the Bank of Japan. All that has been done for the last two years as part of a mass stimulating the local economy, was with the main purpose of a stable support of the economic system. Inflation target for the Bank of Japan and the Cabinet remains the same, at 2%. Let me remind you that the fight against deflation, which hung over the Japanese economy for 15 years, is worth a lot of money to the state.
At this time the weakening of inflation, of course has an objective reason: energy prices are falling, and this will affect the CPI. The higher the inflation, the more chances for the yen and GDP to strengthen.
The medium-term perspective on the USD/JPY pair still remains unchanged - a sustainable outset and nothing more. However, you should pay attention to any comments of the monetary authorities of Japan regarding this inflationary peak - you never know how expectations may change.
RoboForex Analytical Department
Attention!
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.