The Japanese Yen remained stable after Japan released its February employment data. Economists say the jobless rate to remain unchanged from last month making the release worse than expected.The country’s unemployment rate has increased to 3.3 percent from 3.2 in January. The labor force participation rate decreased to 59.3 percent from 59.7 which is the lowest level since March 2015. This means higher amount of people unable to find a job despite a smaller pool of job-seeking workers,which is a bearish signal for the Japanese economy.
A lackluster response from the Japanese Yen likely reflects how the data minimally impacts Bank of Japan monetary policy expectations. Persistent low rates of inflation remain the top concern for the central bankers’ mind. Last week, Japan’s National CPI printed 0.3 percent (YoY) in February versus 0.0 percent in January. Though the jobless rate has increased marginally, overall unemployment is at its lowest level since 1997.
- USD/JPY reamins stable after Japan’s employment report
- Unemployment rate 3.3% in February vs 3.2% expected
- “Persistent low inflation” is one of BOJ’s top concerns
The break above 113.00 confirms that USD has made a short-term bottom at 110.60. The current rebound has firepower and extension towards 114.00 and 114.50 can be expected.
Buyers will give support at 112.50-112.00,level should be watched.
Karen Jones says ““USD/JPY’s correction higher is poised to reach the top of a 6 week channel at 114.02 and we note the Elliott wave count is suggesting that the market will fail here”.