BOJ Ueda: No change in view of Japan economic outlook despite Q1 GDP contraction

BOJ Ueda says Japan remains optimistic despite Q1 GDP decline. Auto output to rebound, easing inflation to boost consumption. Global risks monitored, focus on U.S. soft landing.

Greg Michalowski

Thursday, 23/05/2024 | 12:20 GMT

BOJ Ueda is speaking in the early US session and says:

No change to view on Japan's economic outlook despite Q1 GDP contraction
Japan's Q1 GDP contraction was due largely to drop in auto output, impact on consumption and exports
Expect auto output to recover in Q2 onward. Cost-push inflation to keep easing and underpin consumption
Our view on global economy has not changed much since BOJ's policy meeting in April
Biggest focus regarding overseas risks would be whether U.S. economy will achieve soft landing
Don't see any fresh risks regarding overseas economic outlook

The USDJPY moved above the corrective high from last week at 156.75 at the end of yesterday, and in Asian-Pacific and the European session (by a few pips). The high reached 156.895. The appraiser is taking to new lows at 156.534. The rising 100-hour moving outcomes and at 156.209. Ultimately, getting and staying below the 100-hour moving average is needed to increase the bearish bias technically.