It is observed that consumer prices in Japan rose 2.0 percent on year in February. Consumer confidence improved from an upwardly-revised 40.9 in February to 41.7 in March, the fourth straight rise. Prices were flat from a year earlier driven in part by a drop in energy prices.Although the confidence continued to recover in April, final consumers in Japan have been laggards. Households have so far chosen to save rather than to spend the windfall from lower energy prices.Consumer spending decreased as the effects of the consumption tax continue to linger, and household income decreased 0.7 percent causing average household spending to fall at an inflation-adjusted rate of 2.9 percent on year.The consumer confidence index is just a simple average gauging sentiment for prospects over the next six months. In the past, it remained consistent with solid gains in the number of employed persons. Unfortunately, the connection between consumer confidence and consumer spending is poor.Japan’s imperial bank’s survey evidences that order bookings for Japanese machineries have reduced due to which an uncertain overview of Japan’s business keeps Bank of Japan on the edge.The Japanese yen has been trading mixed. It recovered from yesterday’s 11-day low at 118.79 but struggled to keep gains above 119.00. While AUD-JPY surged following strong Australian jobs data. The 20-day moving average is located at 119.73 and the 50-day moving average at 119.81 marks resistance.
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