28.07.201713:46 Forex Analysis & Reviews: In Japan, Inflation has been Marked but the Main Goal is Still Far

The Japanese yen continued its growth against the US dollar after a failed attempt of the USD / JPY pair growth yesterday morning.

According to the Ministry of the Interior report, consumer prices in Japan rose for the sixth month in a row in June 2017. Yet, the growth rate is still rather modest and far from the target level of the Bank of Japan in 2%.

Thus, the basic consumer price index, which does not take into account prices for the volatile category of goods, increased by 0.4% in June 2017 compared to the same period of the previous year.

Let me remind you that inflation is the main problem of the Bank of Japan, which has been struggling with deflation.

Today, the Bank of Japan announced that the momentum of inflation growth remains 2%, but it is not strong enough.

It became known in the consumer price index.

According to the data, household deals increased by 2.3% compared to the same period of the previous year, whereas economists had predicted an increase in expenses by 0.5%.

The labor market in Japan is in order.

As for the technical picture of the USD/JPY pair, the gradual strengthening of the Japanese yen may again become a "headache" for the central bank. A breakdown in the important technical level of support in the region of 110.80 may lead to a larger downward correction of the trading instrument with an update of 109.80 and with a test of the key target at 108.95. To rely on USD/JPY pair recovery will only be possible after a consolidation above 112.40, which will open the potential for a further rise towards the resistance range of 113.55 and 114.70.