On Wednesday, the USD/JPY pair is slightly falling and staying close to the lowest levels in the last 19 weeks.
The Japanese Yen remains strong against the USD. The current quote for the instrument is 110.85.
At the time when investors were very cautious towards the American currency, the USD/JPY pair fell to the five months’ lows, then corrected a bit, but the overall situation with the instrument hasn’t changed fundamentally by today.
The statistics published this morning showed that the Retail Sales in Japan in February expanded only by 0.1% y/y after adding 1.0% y/y in the previous month and against the expected reading of 0.7% y/y. On MoM, the seasonally-adjusted indicator added 0.2% against expectations of 0.3%.
Decline of the indicator to the current lows YoY is not the most pleasant signal, because it means that consumers are once again very cautious when it comes to daily expenses and prefer to save money. This. In its turn, shows that the Japanese society is expecting more economical stresses.
The recent strengthening of the Yen looks rather painful for the Japanese economy. First of all, it “hurts” export companies, which pay less money to the country’s budget. The growth of the Yen lately has nothing to do with its own stability.
RoboForex Analytical Department