The Yen is ready to continue plummeting. Overview for 29.06.2022

USDJPY is going around in circles; investors are ready to continue buying.

The Japanese Yen is consolidating against the USD on Wednesday. The current quote for the instrument is 136.12.

Nevertheless, this local calmness in the pair shouldn’t mislead anyone – the Yen does remain weak and further devaluation is just a question of time.

Today’s statistics from Japan turned out to be rather mixed.

The Consumer Confidence dropped to 32.1 points in June after being 34.1 points the month before and against the expected reading of 34.6 points. Japanese consumers are a very sensitive and nervous matter with negative reactions to any subtle prospects. This decline in the indicator is a clear signal in favour of changes for the worse.

The Retail Sales showed 3.6% y/y in May, which is better than in April (3.1% y/y) but worse than expected (4.0% y/y).

It might be very interesting to learn what the Bank of Japan thinks about inflation, its stability, and how much the country lags behind other global economies regarding monetary policy. However, the Japanese regulator is either mum on that or keeps repeating different cliches.