Forex Blog
Blog-FX.Com

At the Forex currency market the rate of the cross-pair GDP/JPY ceased being on sale this morning, since external background is neutral and the market has already make use of the news released earlier.

Forex forecast: MACD indicator for the pair USD/JPY has slowed down growth in the negative area, while volumes are below average and maintains a buy signal. Stochastic Oscillator is below the border of Ichimoku cloud, which proves that sellers dominate over buyers.

Forex recommendations: in case of breakdown at the level of 120.50, the pair will go to 120.30 and 120.00, to the lows of November.

From a fundamental point of view investors have been trying to get rid of the pair since the beginning of the week, as European external background was not in favour of risk; however position of the Japanese Yen, which once again proved its status of a protective currency, is quite stable.

There are no risks for the Yen from Japan: The head of the Bank of Japan Mr. Shirakawa noted earlier that interventions against Yen are acceptable and effective. However, practical steps to support the words have not been made: apparently the Japanese regulator is in the “fly-through mode” presently moreover, the Yen does not give grounds for intervention due to its moderate activity.

Tags: