The USD/JPY pair is still being sold as investors weren’t inspired by the BoJ statements.
The Japanese Yen is still in investors’ demand. They have been selling the USD/.JPY pair for the third day in a row. It’s still rather far from the low of June 24th
, but bears are very persistent. The current quote for the instrument is at 101.50; the “bottom” was 99.01.
Today, Mr. Kuroda, the Governor of the Bank of Japan, said that the country’s economy is slowly recovering, although there are still a lot of questions concerning the inflation. According to his opinion, the core inflation may remain at zero for a while before starting moving towards the target at 2%. Kuroda once again confirmed – and he does it on an annoyingly regular basis over the last 6 months – that if necessary, the BoJ will use tools for easing the monetary conditions.
The statistics published on Thursday showed that index of coinciding indicators in Japan in May was 110.5 points, which is lower than it was in April, 112.0 points. As usual, the decrease shows the current the health of the economy. The index of leading indicators, in its turn, in May hasn’t changed in comparison with April and remained at 100 points.
Right now, investors are paying more attention to the “crowd sentiments” than the statistics. And the sentiments are mainly focused on “safe haven” assets, such as the Yen and the US Dollar. The demand on the Yen is rather expressing and the strengthening is not very good for both the BoJ and the local exporters. If the national currency continues to strengthen for another 4-6 weeks, the Bank of Japan will have to expand the motivational program.
RoboForex Analytical Department
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