Release Explanation: This report measure the percent of unemployed persons in the labor force. The unemployment rate can be a leading indicator of the overall health of the labor market. Higher unemployment leads to less income for Japanese workers who, in turn, may reduce consumption. As consumer spending contributes to a majority of Japan’s GDP, developments in the labor market directly affect prospects for Japanese growth.
Trade Desk Thoughts: Japans unemployment rate, seasonally adjusted, decreased to 4.1 percent in January. This report comes in lower than analysts’ expectations of a 4.6 percent reading. The actual number of employed persons in January was 62.92 million, a decrease of 290,000 or 0.5 percent from the previous year. Meanwhile, unemployed persons topped 2.77 million, which was an increase of 210,000 or 8.2 percent from the previous year.
Forex Technical Reaction: The yen has fallen approximately 50 pips from the high of the previous day and is currently finding support just above the neutral pivot point.