USDJPY. Japan’s Inflation Report (25 August 23:30 GMT)

Inflation is one of the more problematic aspects of Japanese economy at the moment. Low inflation level forces Bank of Japan to take unpopular measures – cutting the refinancing and interest rates, as well as introducing various monetary interventions.

Should the inflation figures turn out to be higher than previously expected, the Yen will likely get a boost.

Overall, due to the fact that Japanese Yen is increasing against the main currencies it is a perfect timing for representatives of Bank of Japan to apply unpopular economic measures, because it will help to boost the inflation as well as the overall economic growth. That is why some massive upward rate movements might occur on the price chart from time to time.

USDJPY chart:

The rate is still close to the most important psychological level = 100 on the USDJPY D1 chart (highlighted with orange). This level was tested couple of times lately, but it is yet to be broken (close price of these candlesticks is higher than specific level).

Still, there is a downward rate movement on the price chart (highlighted with yellow).