Japanese Yen Holds Above $112
The Japanese yen stays firm against the US dollar. The USD/JPY pair is trading at 112.17. The state of the dollar/yen pair may change, as markets expect data on inflation, retail sales and the consumer confidence index in the US.
The Japanese PPI steadily advanced higher in 2017 and improved in September to 3.0%. Last week, the Tokyo Core Consumer Price Index, a key indicator of consumer inflation, also showed improvement this year, and the September 0.5% indicator was the highest since March 2015.
The report of the Bank of Japan noted that exports were strong, and consumer spending and construction intensified. The Bank of Japan did not change its inflation target of 2%, although it was forced to lower its inflation forecast several times.