{"id":111533,"date":"2017-08-23T07:51:16","date_gmt":"2017-08-23T11:51:16","guid":{"rendered":"http:\/\/countingpips.com\/?p=111533"},"modified":"2017-08-23T07:51:16","modified_gmt":"2017-08-23T11:51:16","slug":"rubjpy-forex-technical-analysis-on-friday-inflation-data-will-come-out-in-japan","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/08\/rubjpy-forex-technical-analysis-on-friday-inflation-data-will-come-out-in-japan\/","title":{"rendered":"RUBJPY: Forex Technical Analysis – On Friday, inflation data will come out in Japan"},"content":{"rendered":"
August 23, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

On Friday the inflation data will come out in Japan<\/strong><\/p>\n

In this review, we suggest considering the personal composite instrument (PCI) “Ruble vs. Yen”. It reflects the price dynamics of the Russian ruble against the Japanese yen. The PCI grows in case of the strengthening of the ruble and the weakening of the yen. Is there a possibility for the RUBJPY<\/a> to grow?<\/p>\n

The Russian ruble remains stable or is strengthening while the price of Brent oil exceeds $50 per barrel. The strengthening of the yen has a negative impact on the performance of the Japanese exporting companies, so the Bank of Japan tries to struggle against it. In particular, it can refuse to tighten the monetary policy or raise rates, despite the inflation growth. This can weaken the yen exchange rate. On Friday, August 25, the consumer price index for July will be released in Japan. It is expected to grow for the 7th month in a row. The key indicator of the Consumer Price Index Ex-Fresh Food may be 0.5%. This is still much lower than the Bank of Japan target level of 2%. According to the survey of the Japanese companies by the Nikkei Research agency, only 14% of the respondents support the further easing of the Bank of Japan monetary policy. They believe that such measures do not cope well with deflation and contribute to risky debts growth.<\/p>\n

\"RUBJPY\"<\/p>\n

On the daily timeframe, RUBJPY: D1<\/b> came out from the downtrend. The further price increase is possible in case the Brent oil price remains above $50 per barrel and the Bank of Japan continues the policy of low rates and the yen emission.<\/p>\n