According to the official report released by the Japanese statistical authority, the year-over-year dynamics of consumer prices (excluding fresh food) showed no changes in February 2016.
The bank of Japan predicts that the rate of inflation is going to hit the target level set by the central bank in a matter of 12 months. The overall rate of inflation in Japan reached 0.3% in February 2016 as opposed to January 2016 when inflation reached zero level.
At this point, the Bank of Japan expects the inflation rate to reach the 2% target no sooner than the second quarter of 2017. On top of that, the central bank started the year with introducing negative interest rates. By the way, we remind you that the bank made his crucial step for the first time ever. At the same time, the Bank of Japan is determined to expand its monetary base at the same level of 80 trillion yen per year in order to make inflation hit the 2% target over the mentioned period of time.
FOREX
Meanwhile, the Japanese Yen keeps on gaining value against the U.S. Dollar within the scope of the same long-term trend, which means that USDJPY is going down. To be more specific, the currency pair is forming wave 4 and trading close to 112,30.
The closest targets are such levels as 110.66, 110.51/15, 108.36/06. At the same time, a break above MF pivot 121.68 as well as the top of the descending MF sloping channel is going to put an end to the existing move.
