The USD/JPY pair is slowly regaining its positions; the market’s interest in “safe haven” assets is reducing.
The Japanese Yen is retreating in the pair with the American Dollar and stabilizing after extraordinary demand last week. The current quote for the instrument is 102.73; the low was on June 24th
The demand for the Yen, as the second “safe haven” currency in order of importance, increased after the British referendum results were published. As soon as everything went back to normal, the interest in the Yen started decreasing.
According to the statistics published today, retails sales in May in Japan remained at zero on a month-on-month basis. On a year-on-year basis, the indicators reduced to up to -1.9% from -0.9% the month before. Annual decline was more serious than it was expected. Considering that the retail sales index is one of the most reliable indicators of the country’s healthy economy, we may assume that the Japanese system is far from feeling well and smoothly.
For Japan, the British drama has its own risk. For a long time, Japan had been working on the free-trade zone with the European Union, and now, when the EU’s borders are ready to open, the entire plan may become at risk. At the moment, long-term economic relations are very essential for Japan, which has been attempting to breathe new life into its economic system and move the inflation into positive zone for several years. The Brexit story has just begun, and who knows how it might end for the world community.
RoboForex Analytical Department
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