Overnight, consumer confidence in Japan is forecasted to turn increasingly pessimistic during the month of November, as the index excluding one-person households is likely to drop to the worst levels in at least 26 years, as record-keeping began in 1982. With the Japanese economy already in recession thanks to lackluster consumption and waning foreign demand for exports, indications of weakening consumer sentiment will not bode well for domestic demand going forward. The bigger concern amongst traders though is what will happen if USD/JPY falls below 90. There’s quite a bit of speculation that the Bank of Japan will step in and intervene if this actually happens, and seeing as though they have a long history of doing so successfully, it seems feasible.
Related Article: US Dollar Shows Little Hope of Recovery Against Japanese Yen
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