USDJPY is trading upwards; investors’ interest in the Yen is rather low due to absence of significant risks.
On Monday, the Japanese Yen is not in demand and continues falling against the USD. The current quote for the instrument is 107.79.
The statistics published in the morning showed that the Flash Manufacturing PMI in Japan expanded up to 53.3 points in April after being 53.1 points the month before and against the expected reading of 53.4 points.
One good signal is that the sector has been improving since the beginning of 2018 and the indicator has been above psychologically-crucial of 50 points for quite a long time. Another one is that the upward trend is confirmed by positive signals from the report components: output, new orders, and employment. This is very good for the Japanese economy.
While delivering his speech this morning, Haruhiko Kuroda, the current Governor of the Bank of Japan, focused a lot of the inflation. In his opinion, the Core Inflation Rate, excluding such volatile goods as food products and fuel, is looking not very impressive right now being equal to 0.5%. However, there are some positive signs in the economy, which indicate a slow growth of prices.
The inflation target of the Bank of Japan remains at 2% and, according to Kuroda, it may be reached as early as in 2019. The BoJ’s policy should continue its accommodation policy so that the CPI could constantly grow. However, even after the target is reached, this policy will remain in effect: it’s important both to reach the target and hold it.
RoboForex Analytical Department