The Japanese Yen sees no prospects
09.06.2014
On Monday the USD/JPY pair traded in a slightly declining range, although reactions to a strong report on Japan's GDP could be more pronounced.
The Japanese yen is rising today against the U.S. dollar, although reports on the economy of the state of the rising sun looked very confident.
On Monday it became known that the growth of the Japanese economy in the first quarter of 2014 amounted to 6.7% y/y vs. a prior forecast of 5.9%. Also, average growth of the economic system in January-March this year was 5.6% y/y. The Japanese economy has finished the fourth quarter of 2013 of with a gain of 0.3% y/y.
The impulse of the first quarter is the most powerful since the third quarter of 2011. This is important: the growth rate of investment in the economy of Japan is sufficient to withstand the April tax increase on sales.
There will be a decrease in GDP growth in the second quarter in any case, but the question is: how quickly can the economy recover further? At the moment the data shows that this can happen very quickly.
Morning statistics brought a report on current account surplus in Japan - in April the index rose, reaching 187.4 billion yen against the March level of 116.4 billion yen. Interestingly, the final data was almost twice weaker than expected (287.7 billion yen), but this is easily explained: the effect of the tax rate is at work.
Overall, at the beginning of the year the Japanese economy looked very confident - of course, due to the cumulative effect of investments as well. This margin will continue to work in favour of Japan.
RoboForex Analytical Department
The Japanese yen is rising today against the U.S. dollar, although reports on the economy of the state of the rising sun looked very confident.
On Monday it became known that the growth of the Japanese economy in the first quarter of 2014 amounted to 6.7% y/y vs. a prior forecast of 5.9%. Also, average growth of the economic system in January-March this year was 5.6% y/y. The Japanese economy has finished the fourth quarter of 2013 of with a gain of 0.3% y/y.
The impulse of the first quarter is the most powerful since the third quarter of 2011. This is important: the growth rate of investment in the economy of Japan is sufficient to withstand the April tax increase on sales.
There will be a decrease in GDP growth in the second quarter in any case, but the question is: how quickly can the economy recover further? At the moment the data shows that this can happen very quickly.
Morning statistics brought a report on current account surplus in Japan - in April the index rose, reaching 187.4 billion yen against the March level of 116.4 billion yen. Interestingly, the final data was almost twice weaker than expected (287.7 billion yen), but this is easily explained: the effect of the tax rate is at work.
Overall, at the beginning of the year the Japanese economy looked very confident - of course, due to the cumulative effect of investments as well. This margin will continue to work in favour of Japan.
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.