The Yen is getting cheaper. Overview for 20.04.2018

20.04.2018

On Friday, USDJPY is trading upwards; the statistics provided no support to the Japanese currency.

The Japanese Yen is falling against the USD on Friday afternoon. The current quote for the instrument is 107.67.

In the morning, Japan reported on the National Core CPI, which was only 0.9% y/y in March. The actual reading matched the expected one, but both of them are worse than the indicator was in the previous month, 1.0% y/y. The Inflation Rate increased up to 1.1% y/y, which is also worse than it was in February, 1.5% y/y.

As a result, the Consumer Price Index remains one of the most important issues in Japan, which is very difficult to solve. Market expectations relating to the inflation in the country implied growth of the indicator based on increased prices on fuel and food products. As before, the target for the inflation set by the Bank of Japan is 2%.

The Japanese regulator will have to continue the QE program until the inflation reaches stability and stops changing directions. However, it may take months.

Another report from Japan, the Tertiary Industry Index, didn’t change in February after losing 0.4% m/m in January and against the expected reading of +0.1% m/m.

 

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.