Forex Brokers Award 2020
Vote your favourite broker
Trade 100 Bonus - the best offer on Forex market

Japanese Inflation Hits Lowest Level Since May 2018

Jan 18 2019, 08:17 PM (+06) |

The latest Japanese inflation data did little to inspire hope in a change-of-course for BOJ policy anytime soon. Core inflation, which strips out energy and food prices for December grew just 0.7% year on year. This data was down from the prior month’s 0.9% reading and still well below the bank’s 2% target. Indeed, CPI is now sitting at its lowest level since 2018.

Headline inflation, including energy prices and food prices, rose just 0.3% in December, year over year. The components offering the strongest positive contribution were fuel, light, water and medical care. The overall downshift in inflation was due mainly to the fall in house prices and communication fees.

The BOJ had a very frustrating year in 2018 when it came to battling to push inflation higher. With weakening economic activity and still depressed wage growth, the annual figure for 2018 ended the year at just 1%, half of the BOJ’s 2% target.

This latest data keeps BOJ policy change expectations constrained and is likely to see the BOJ lowering its inflation forecasts further.

Technical Perspective


After piercing below the rising trend line from 2016 lows, USDJPY rebounded sharply to close back above and is now once again challenging the bearish trend line from 2016 highs. Above here, focus will shift back to a move up to the 114.50s region which has been key resistance in USDJPY over the last two years.

At Orbex, the client is at the heart of everything we do and everything we do is designed to guarantee your satisfaction. Here’s how Forex Trading with Orbex will enhance your trading experience: Best-in-class customer service, including live chat and free webcall One-hour response time for sales and support requests Multiple asset trading and ECN accounts on MT4 0.9 pip fixed spread at ZERO commission Up to 1:500 leverage