USDJPY remains under pressure on Tuesday morning, although market sentiment is obviously improving.
The Japanese Yen remains strong against the USD. The current quote for the instrument is 107.21.
The statistics published in the morning showed that the Unemployment Rate in Japan increased up to 2,5% in March after being 2.4% the month before. However, it’s quite logical considering the coronavirus pandemic and the stress that businesses are currently suffering from.
Yesterday, the Governor of the Bank of Japan Haruhiko Kuroda said that the active coronavirus transmission in Japan and beyond wielded major influence on the Japanese economy. According to his words, the country’s economy might remain in dire straits, and attempts to stabilize inflation might take more time than was expected earlier.
At the same time, the regulator left the inflation target unchanged at 2%, although it’s quite clear that reaching it may require much more effort.
The Bank of Japan realizes that in order to reach the target in the future, it must adhere to a flexible monetary policy.