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.
Source: Admiral Markets MetaTrader 5. JP225 daily chart. Data range: from January 27, 2020 to May 28, 2021. Prepared on May 28, 2021 at 1:30 p.m. CEST. Keep in mind that past returns do not guarantee future returns.
Evolution in the last 5 years:
- 2020: 16.01%
- 2019: 18.20%
- 2018: -12.08%
- 2017: 19.10%
- 2016: 0.42%
With the Admirals Trade.MT5 account, you can trade Contracts for Differences (CFDs) of the Nikkei and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With a view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.