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, increased to 4.4 percent in January. The loss of jobs and high unemployment rate is at the highest levels in more than 30 years. Global sales have declined at record pace which has forced corporations in the exporting industry in Japan to cut hours and workers. There have been few new jobs offered as companies do all that they can to contain new costs.
Forex Technical Reaction: The yen has not reacted to the recent report and is currently trading just above the neutral pivot point at 97.35.