The USD/JPY pair is slowly growing on Wednesday afternoon, but a turn in the trend is still far off.
The Japanese yen still looks too strong for the current state of the economy of Japan. The USD/JPY pair is trading around the 111.85 mark on Wednesday afternoon.
This morning statistics were released, according to which the index of leading indicators in December in Japan amounted to 102.1 points against the forecast of 102 points. The coincident index is estimated at 110.9 points, while the index of leading indicators was the same at 102.1 points. In general, everything is neutral, with the assessment of current conditions and prospects as well. It seems that no one now expects positive bursts in Japan’s economy.
On Wednesday, speaking in parliament, the head of the BoJ Mr. Kuroda pointed out that the observed recent strengthening of the yen is associated with the weakness of the US dollar. The yen always “sensitively” responds to these changes of moods, it is well aware of the capital markets, so no special sensation came with these comments. However, Kuroda said that the Bank of Japan is always ready “to take decisive action” if the market fluctuations will threaten economic stability and trends within the system.
Yes, of course, no one will now be helping speculators to earn – all is well for them already. In the words of Mr. Kuroda there is a very important grain of truth: the Bank of Japan will observe what effect the monetary policy gives and how it affects the Japanese stock market, and not vice versa.
Last published US statistics looks ambiguous, and the US dollar, in fact, is becoming more “thin” in the growth strategy. This point will be taken into account in the USD/JPY pair.
Source: RoboForex
