Japan Slips Into Technical Recession - How Will This Impact the Yen? USD/JPY Analysis
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USD/JPY has been under pressure in the last week or so after Japan annonced its economy has contracted for two quarters in a row - something many consider as a technical recession.
In an interview with “Squawk Box Asia” on the 15th of February, former member of the Bank of Japan's board Sayuri Shira anticipates that the central bank will abandon its negative interest rate policy in the upcoming spring. However, due to slow economic growth, the bank's ability to counteract the depreciation of the yen will be limited.
BOJ Governor Kazuo Ueda faces mounting pressure to halt the decline of the yen caused by the disparity between high interest rates in the United States and Japan's extremely accommodative monetary policy. However, he is also constrained by persistently high inflation levels that BOJ policymakers consider unsustainable. This inflation has dampened domestic demand and pushed the economy into a technical recession. As a result of this unexpected downturn, Japan's economy has now slipped to the world's fourth-largest, trailing behind Germany.
00:00 Intro
00:11 USD/JPY News update
07:54 USD/JPY chart analysis
11:56 Recap
***
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This video is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.
The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.
Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.
Capital Com SV Investments Limited is regulated by Cyprus Securities and Exchange Commission (“CySEC”), under licence number 319/17.
Capital Com SV Investments Limited, company registration number: 354252. Registered address: Vasileiou Makedonos 8, KINNIS BUSINESS CENTER, 1-3th floor, 3040, Limassol, Cyprus
In an interview with “Squawk Box Asia” on the 15th of February, former member of the Bank of Japan's board Sayuri Shira anticipates that the central bank will abandon its negative interest rate policy in the upcoming spring. However, due to slow economic growth, the bank's ability to counteract the depreciation of the yen will be limited.
BOJ Governor Kazuo Ueda faces mounting pressure to halt the decline of the yen caused by the disparity between high interest rates in the United States and Japan's extremely accommodative monetary policy. However, he is also constrained by persistently high inflation levels that BOJ policymakers consider unsustainable. This inflation has dampened domestic demand and pushed the economy into a technical recession. As a result of this unexpected downturn, Japan's economy has now slipped to the world's fourth-largest, trailing behind Germany.
00:00 Intro
00:11 USD/JPY News update
07:54 USD/JPY chart analysis
11:56 Recap
***
www.capital.com
Explore trading and start investing with Capital.com.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
This video is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.
The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.
Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.
Capital Com SV Investments Limited is regulated by Cyprus Securities and Exchange Commission (“CySEC”), under licence number 319/17.
Capital Com SV Investments Limited, company registration number: 354252. Registered address: Vasileiou Makedonos 8, KINNIS BUSINESS CENTER, 1-3th floor, 3040, Limassol, Cyprus
