USDJPY is ready to update its multi-year lows again.
The Japanese Yen is back to devaluating against the USD. The current quote for the instrument is 139.38.
The “greenback” is extremely strong. In addition to that, market players didn’t get any signal from the Bank of Japan concerning the revision of its monetary policy. It makes the BoJ and the Yen very vulnerable.
According to statistics published yesterday, the Retail Sales report showed 2.4% y/y in July after being 1.5% y/y in the previous month and against the expected reading of 1.9% y/y. The preliminary report on Industrial Production showed 1.0% m/m in June, although it was expected to decline after skyrocketing 9.2% nm/m in May.
It’s quite interesting that Consumer Confidence in Japan improved: in August, the indicator showed 32.5 points after being 30.2 points the month before and against the expected reading of 29.4 points.
One of the BoJ members said yesterday that during its September meeting the regulator was going to make a decision about the remaining stimulus introduced during the pandemic. He said that the CPI had surpassed 2%, but it was still not enough. The Bank of Japan is working towards a positive cycle, when both inflation and salaries rise based on an increase in corporate profits and improvements in the labour market.
His words are surely positive. However, will the Japanese regulator deviate from its standard conservative course? Highly unlikely.
Source: Roboforex
