The Japanese economy resumed its growth in the first quarter of the year. This is confirmed by the recent report released by Japan’s official statistical agency. The Japanese government is reported to be sure about the fact that the existing economic growth reflects some progress made in the fight against deflation.
To be more specific, as of the end of Q1 2016, the Japanese GDP increased by 0.4% relative to the same figures for the previous reporting period. It is interesting to note that the actual figures turned out to be stronger than expected – 0.1% against 0.4%. At the same time, the latest figures happen to have come along way from -0.3% all the way up to the mentioned 0.4%.
As for the year-over-year figures, the GDP gained 1.7% over the same reporting period, Masterforex-V Academy reports. The mentioned GDP growth became possible thanks to higher household spending in Japan. To be more specific, the household sending increased by 0.5% while analysts had expected only a 0.3% increase at that time. It is interesting to note that the very fact that the economy resumed its growth creates some space for the Japanese government to avoid any further tax-and-budget stimulation in the near future.
FOREX
Masterforex-V Academy reports that the Japanese Yen is still forming the same long-term rally against the U.S. Dollar, which means that USDJPY is going down. To be more specific, USDJPY is going down within the scope of wave 3/C of level Weekly2.
The key levels of support are represented by the 105.54 low as well as 105.46, 103.66, 102.74, 100.76/46. Alternatively, a break above the top of the descending MF sloping channel and MF pivot 111.88 is going to indicate the completion of the existing bearish tendency in the market of USDJPY, Masterforex-V Academy experts say.
