Last week, traders were left confused as the Japan yen recorded different results in forex sessions. Last week Friday was also the day when the Bank of Japan governor gave a dovish remark, triggering speculations of future easing.
The Japan yen contract rallied 0.32%, or 0.000029 points, last week.
Meanwhile, the yen failed to gain traction against the greenback on Friday’s trading. The USD JPY exchange rate rallied 0.11% or 0.11 points and prices fluctuated between ¥109.45 to ¥109.67 that day.
Meanwhile, the EUR JPY trading pair flatlined last Friday. The pair still reached levels from ¥120.41 to ¥120.67.
The British pound to Japan yen shared the same faith last Friday. The pair only inched up by 0.07% or 0.09 points but has extended its rally from ¥141.13 to ¥141.50 that day.
Fortunately, the yen still managed to secure a few gains against the Swiss franc on Friday. The CHF JPY trading pair tumbled down by 0.18% or 0.20 points and has extended its loss from ¥109.73 to ¥109.42.
More Space for Adjustments
Last Friday, Bank of Japan governor made headlines after saying that the bank still has ample room to ease. Traders are worried that the tax hike from the Japanese government isn’t doing as well as planned.
Bank of Japan governor Haruhiko Kuroda spoke at the Japanese Parliament’s lower house financial committee last Friday.
The Japan yen could have a bearish reversal if the bank really decides to cut rates.
Anyhow, the government is scheduled to release the country’s October household spending report this Friday, December 6. However, last week a poll on economists showed that the experts expect a sharp decline from household spending.
According to them, the positive results from September’s reading was due to the bulk purchasing of families before the tax hike.
Tokyo increased its sales tax from 8% to 10% at the beginning of October.