This morning Japan released inflation data for December, where it reported an increase in deflation from 0.9% to 1.2%. The decline in prices was caused by almost all groups of goods, which was caused by a decrease in consumer demand amid the coronavirus pandemic.

An extensive vaccine of the population in the Land of the Rising Sun is expected in three months, respectively, consumer demand will begin to recover only in the summer. Until that time, inflation will be in the negative area, which reduces the investment attractiveness of the yen.

Investment idea: Buy 103.54/103.36 and take profit 103.85.