The unemployment rate in Japan grows as a result of the pandemic
During yesterday's session, we learned about the new requests for unemployment benefits in the United States, where we could observe that this was not only better than last week, but it was also better than expected, since these were slightly higher than the 400,000 weekly subsidy requests, settling at 406,000 compared to the 425,000 expected by the market consensus.
Despite this, the US dollar continues to be weak against the main currencies fighting to maintain its important support level at $90.00, although this week it seems that it is recovering ground against the Japanese yen with a rise close to 1%.
On the other hand, today, we have seen that the unemployment rate in Japan has increased, due to the problems derived from the pandemic and the damage it is causing in the Japanese economy. It has also caused a decrease in consumption and therefore a decrease in the prices of basic products establishing the core CPI for the month of May at -0.2%. This indicates that the expectations of the Japanese central bank regarding the control of inflation are maintained.
If we focus on the financial markets, we can see that the Nikkei index closed the session today with a rise of 2.10% despite the bad unemployment data, thus continuing the upward momentum after bouncing off its average of 200 sessions in red that currently acts as the main support level after the break of the long-term trend line, although the price is currently struggling to recover that area.
Technically speaking, despite the fact that the long-term trend continues to be upward, since the Japanese selective marked maximums last December, the price is consolidating in a lateral range with a downward bias. As long as the price does not manage to rise above the medium-term downtrend line that acts as resistance, we cannot expect an attack on the highs.
Evolution in the last 5 years:
- 2020: 16.01%
- 2019: 18.20%
- 2018: -12.08%
- 2017: 19.10%
- 2016: 0.42%
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