The Japanese Yen is hesitating. Overview for 08.12.2021

USDJPY is going around in circles for the second straight trading session; market players are evaluating the situation.

The Japanese Yen is barely moving against the USD for the second day in a row. The current quote for the instrument is 113.39.

According to the data published in the morning, the Eco Watchers Survey Current was 56.3 points in Japan in November, way better than expected (49.0 points). On the other hand, the Eco Watchers Survey Outlook dropped to 53.4 points after being 57.3 points the month before.

One of the BoJ’s members said today that the Japanese economy would recover during 2022. These words came right after the final GDP report for the third quarter of 2021. The indicator dropped 0.9% q/q against the expected decline of 0.8% q/q. On YoY, the indicator lost 3.6%. Household consumption fell noticeably amid a resurgence of COVID-19 cases and couldn’t support the economy.

The regulator’s key scenario implies that the country’s economy will start recovering in the first half of 2022. Also, the BoJ may announce its plans to extend the QE programme in December or January. Policymakers said that their stance remains flexible.

The demand for the Yen as a “safe haven” asset is currently very low – capital markets are recovering after “coronavirus” sales.