According to the Japanese government, they have recently downgraded their estimates of the overall economic situation in the country. At the same time, it should be noted that this is the first time over the past 5 months that the government has done such a step.
With that being said, Japan’s economic foundation is still strong despite multiple challenges. To be more specific, the Japanese economy is seeing a slowdown in economic activity. It is due to weakness in several sectors of the economy that the government had to downgrade the estimates relative to the previous reporting period, Market Leader reports. For now, the government says that the economic situation in Japan is as poor as in October 2015. The downgrade concerned such sectors as consumer spending and corporate income. Still, they say that the economy is far form being to weak to be concerned about its well-being.
At the same time, Japanese financial officials say that Japan is going to hit the 2% inflation target in 2017. The Bank of Japan assumes that the country needs a long-term of ultra-easy monetary policies.
FOREX
In the meantime, Masterforex-V Academy reports that the Japanese Yen keeps on rallying against the U.S. Dollar within the scope of the same long-term uptrend, which means that USDJPY is currently going down. To be more specific, USDJPY is making wave 3/C of level Weekly inside the rally. The currency pair is somewhere around 113,01. With that being said, the price has come close to a major level of support, which is 110,05.
At this point, there is another smaller-scale wave being built inside of the mentioned upward momentum. This is probably wave b(C ) of the upward move. A break above the local high of 0.6872 is going to continue the current wave. If that’s the case, the next major levels of resistance are going to be found somewhere around 0.6881/96 as well as Fibo level 0.7056. Alternatively, a break below MF pivot 0.6571 as well as the bottom of the ascending MF sloping channel is going to put an end to the existing bullish wave. A break above MF pivot 121.63 as well as the top of the descending MF sloping channel are going to complete the current wave.
