According to Japan’s statistical agency, the level of consumption in Japan increase in February 2016. It is interesting to note that the increase seen in February took place for the first time in 6 months.
To be more specific, Japanese households spent 1.2% more funds in February 2016 than over the same period 12 months before. It is also interesting to note that back in February 2015, the same index showed a 3.1% decline. At he same time, the analysts had expected a 1.2% drop, which means hat their predictions failed completely.
Please keep in mind that the household spending report reflects the level of optimism shown by Japanese consumers. With that being said, any growth shown by the index backs a stronger national currency, which is the Japanese Yen in this case. At the same time the index is also seen as a catalyst for the economic health of Japan.
FOREX
In the meantime, Masterforex-V Academy reports that the Japanese Yen is still trying to get stronger within the scope of a long-term rally against the U.S. Dollar, which means that USDJPY is going down within the scope of a long-term downtrend. To be more specific, the experts say that USDJPY is still mowing lower within the scope of wave A/B of level Weekly2.
At this point, the currency pair is busy making a smaller-scale move – wave 4 inside the move. On breaking below 110.66, the price is going to resume the current tendency. If that’s the case, the price may find it difficult to break below 110.51/15, 108.36/06. Alternatively, a break above MF pivot 121.68 and the top of the descending MF sloping channel is going to put an end to the mentioned bearish tendency of USDJPY.
