Japan Slips Into Technical Recession - How Will This Impact the Yen? USD/JPY Analysis
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- Опубликовано: 4 июн 2024
- USD/JPY has been under pressure in the last week or so after Japan annonced its economy has contracted for two quarters in a row - something many consider as a technical recession.
In an interview with “Squawk Box Asia” on the 15th of February, former member of the Bank of Japan's board Sayuri Shira anticipates that the central bank will abandon its negative interest rate policy in the upcoming spring. However, due to slow economic growth, the bank's ability to counteract the depreciation of the yen will be limited.
BOJ Governor Kazuo Ueda faces mounting pressure to halt the decline of the yen caused by the disparity between high interest rates in the United States and Japan's extremely accommodative monetary policy. However, he is also constrained by persistently high inflation levels that BOJ policymakers consider unsustainable. This inflation has dampened domestic demand and pushed the economy into a technical recession. As a result of this unexpected downturn, Japan's economy has now slipped to the world's fourth-largest, trailing behind Germany.
00:00 Intro
00:11 USD/JPY News update
07:54 USD/JPY chart analysis
11:56 Recap
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I was impressed, somebody really did their homework. A plus.
Appreciate it!
@@Capitaltrading Wages have to go up for those working in Japan to bear the load for the huge numbers or retired, and those who just chose not to work. There is a dwindling job force, and the demands keep raising.
Interesting view, as always.
But the "truth" (whatever that means right?) is more simple: It doesn't matter if Capital is correct or not. It's about being a bookie. Just get people to trade.
Japan also made a huge mistake on fining companies per employee who worked over 45hrs overtime a month. This makes employees who depend upon overtime to make ends meet due to lower wages just quit. 100 employee company with 60 white collar, and 40 blue collar falling out of balance. Go figure?
Money is not someone else’s social credit to allow them to steal from another who has earned it from producing real wealth. Everyone will wake up to this fact.