According to the latest reports coming from Japan, the local retail sales dropped down to 0,2% year-over-year in September. For the sake of comparison, the previous value was at 0,8%. At the same time, analysts had expected a slowdown to 0,4%.
Masterforex-V Academy reports that this s the first time in 6 months the retail sales have shown such a sharp drop. It should be noted that the sharp drop in retail sales was triggered mainly by lower energy prices and came as a surprise to the Japanese authorities. The current situation reflects the weakness of the Japanese consumer sector. At the same time, this is a negative factor for the Japanese Yen since this is a key economic indicator.
As for the month-over-month figures, they showed positive dynamics over the reporting period. When adjusted for seasonality, the monthly gain reached 0,7% in September.
The local experts seem to have found the reason for the retail sales drop. They say that the fuel sales dropped by as much as 15,45 over the period of September 2014 – September 2015. This affected the overall retail sales figures.
FOREX
In the meantime, Masterforex-V Academy reports that the Japanese Yen has been retracing from the long-term rally against the U.S. Dollar. This means that the U.S. Dollar is rallying against the Japanese Yen once again.
The closest levels of support - 119.81/77, 119.35 + 120.01
The closest levels of resistance - 121.48 + 122.14/29, 122.79.
