FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, underlines today's offered tone around the Japanese currency.
"The yen has weakened modestly in the Asian trading session with USD/JPY rising back towards the 102.00-level which is just below its’ average level since early February. USD/JPY has been trading within a very narrow range between the 101.00 and 103.00 levels since February. The yen has weakened modestly overnight undermined by the gradual improvement in global investor risk sentiment as Asian equity markets have made modest gains."
"Yen weakness has also followed the release of the weaker than expected employment report from Japan for June. The report revealed that employment growth was flat in June."
"The unemployment rate unexpectedly rose by 0.2 percentage point to 3.7% as the number of unemployed increased by 4.7% as more people entered the labour force in search of work lifting the participation rate. Still the underlying trend in the Japanese market remains one of improvement with labour market conditions continuing to tighten."
"The job openings-to-applications ratio rose by 0.01 point to 1.10 in June reaching its highest level since June 1992. The BoJ expects that the tightening in labour market conditions will steadily place upward pressure on wages helping to lift inflation towards their 2.0% target."