The Japanese Statistics Bureau released its consumer price index (CPI) readings for Tokyo this morning, revealing an unexpected contraction in consumer prices. The news was not understood as negatively as in other places since a contraction was already expected, but the deeper downturn does raise a specter of tension in the island economy.
With the Bank of Japan’s (BOJ) recent forex intervention, the strength of the yen has been called into question and is being challenged on several fronts. The news that prices are in decline across Japan indicates that the value of domestic goods is falling as fewer people are buying, and the Japanese economy is coming under pressure as a result.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
