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Decreasing profit for importers

The Yen depreciation makes Japanese importers less competitive because of the higher material costs. It needs the domestic price increase thereafter, and the sales would decrease in the future.

Rising cost of energy

The Yen depreciation stands for the US dollar appreciation. The weaker Yen makes the cost of materials, especially, crude oil and gasoline. Eventually, it follows that the all prices regarding to energy like the electricity and the gas would be going up.

Weaker consumer sentiment

The Yen depreciation brings about the higher prices of imports, and the domestic products would be forced to cost increase. According to the inflation, the Japanese exporters make up the prices of products so as they would take back the sales down during Yen appreciation period. A series of rising prices might get down the consumer sentiment and the consumers refrain from purchase of luxury goods besides consumer staples.

 
 

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