Ultima MarketsMarket Hot Spots: Unemployment Unexpectedly Rising, Prospects for Japanese Yen Appreciation...

Today, Japan releases the latest unemployment rate data, which shows a new rise to2.7%Exceeding market expectations2.5%And reached a new high in the past four months. This sudden increase in unemployment rate may have an impact on subsequent policy formulation by the Bank of Japan.

(Japan's unemployment rate)

From the perspective of policy makers, The rising unemployment rate may exacerbate competition in the job market, posing greater challenges for job seekers. At the same time, companies may reduce recruitment and expansion, thereby exerting a restraining effect on economic growth.

The Bank of Japan has been adopting loose monetary policy to stimulate economic growth and drive inflation. If the unemployment rate continues to rise, it may have an impact on the central bank's policy decisions. The central bank may need to assess whether further stimulus measures are needed to stabilize the job market and economic growth.

(Bank of Japan policy interest rates remain negative for a long time)

The Japanese yen did not show much change after the data was released. Given the rising unemployment rate, market expectations for the Bank of Japan's tightening policy may temporarily be shelved. After a week of adjustment, the US dollar/yen continued to rise again this week, approaching the price range that the Bank of Japan may take action. Based on historical price trends, if the market breaks through the previous high in the European market today, there is still a possibility of the yen continuing to depreciate today.

USD/JPY daily cycle, sourceUltima Markets MT4）

At last week's Jackson Hole annual meeting of the Bank of Japan, Bank of Japan Governor Kazuo Shibata continued to "raise the pigeon", stating on Saturday that core inflation remains "slightly lower" than the set by the Bank of Japan2%The goal of. It can be said that the rising number of unemployed people represents that the current dovish policy of the Bank of Japan may be correct, and if the yen wants to regain its glory of appreciation, it may be far away.

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