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• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
• NZD: New Zealand Dollar is descending [11/10/2011]
• AUD: sales of Australian Dollar do not subside [11/10/2011]
• JPY: Japanese Yen remains in the narrow trade range [11/10/2011]

JPY: Correction started for Japanese Yen after the rise on Tuesday

The Japanese Yen rate demonstrates technical pullback at the Forex currency market on Wednesday following sharp rise yesterday when investors’ optimism about world economic recovery encouraged purchases of all currencies.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and continues to go down, which indicates that sales will go on. Stochastic Oscillator went down to the oversold zone today which gives ground for a pair buy signal.

Forex recommendations: taking into account external background, corrective ascending channel can find a confirmation today, and in this case buyers’ targets will be the levels of 81.75 and 81.90. 

Representative of the Bank of Japan Mr. Kamezaki noted this morning that economy in the Country of the Rising Sun will overcome the phase of deceleration by the spring; nevertheless careful monitoring of the developments is still required at Forex, where sharp fluctuation of currencies remains unwanted.

Monetary politician observes high risks of downward pressure from the USA and Europe. In Japan downside and upside risks appear balanced. In addition Kamezaki stressed that Japan should resolve its debt problems quickly, before the country loses credibility.

We would remind that a two-day meeting of the Bank of Japan was held last week; where the decision was made to keep interest rate in the previous target range of 0-0.1% per annum.  The head of the Bank of Japan Mr. Shirakawa noted in the follow- up comments that the country continues to move towards achieving price stability and at the moment both upside and downside risks to the economy are stabilized.

Statistics released earlier was mixed: unemployment and number of new jobs has become a positive factor for the Japanese economy; at the same time consumption sector is still in crisis (unemployment rate in December: 4.9% against 5.1% in November; net CPI in December:-0.4% y/y against -0.5% earlier; consumer expenditure in December: 3.3% against the forecast of -0.6%).
 

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