JPY Daily News

Yen May Continue to Depreciate in the Long-Term

Last week the Yen continued to weaken against the major currencies. Its sharpest drop was against the EUR; however it saw bearish trends against the Dollar and the Pound as well.

Last week was filled with significant data economic data from Japan. The Japanese Preliminary Gross Domestic Product dropped by 3.3%. The contraction was the third quarter in a row of negative economic growth. This is the broadest measure of economic activity and as long as it continues to deliver negative figures, the JPY will most likely depreciate further. As expected, the Bank of Japan ruled to keep the Interest Rate at 0.10% - the lowest rate in the western world. It seems that the Japanese leaders will do anything they can to prevent the JPY from strengthening further. Traders should consider using this opportunity to open long-term short position on the JPY.

In the meantime, on Tuesday night the Japanese Trade Balance is expected to slide to -0.49T. The Japanese economy is largely dependant on its exports and such result is devastating for it. If this figure is accurate the Yen could drop sharply as a result. Also interesting will be the Japanese Retail sales and the Tokyo Core Consumer Price Index that will be published on Thursday night, and traders are advised to follow them.

Current Time: 05/27 04:41 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
02/23
	23:50	JPY	Monetary Policy Meeting		*	*	*
	23:50	JPY	CSPI	y/y	-2.5%	-2.5%	-2.2%