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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: Correctional rollback is being continued for Japanese Yen; however, purchase volume is low

The Japanese Yen rate continues to be corrected at the Forex currency market after the slump last week. Japanese markets are closed today.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and continues to move along the signal line, not forming a clear signal. Stochastic Oscillator remains in the overbought zone at the beginning of the week and is not giving a clear signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in cease of breakdown at the level of 83.30 the pair will go to 83.50 and 83.80. If the level of 83.00 is exceeded, traders’ targets will be the levels of 82.80 and 82.50.

The situation in the Japanese economy remains unchanged.

At the meeting which was held at the end of December, the Bank of Japan announced the decision to leave interest rate unchanged in the target range of 0-0.1% per annum. The vote was unanimous. In the follow-up comments the regulator emphasized that assessment of economic situation remained unchanged and economic growth will be slow and small for some time. Nevertheless, Japanese economy continues to demonstrate signs of moderate recovery. In addition, the Bank of Japan lowered its forecasts for industrial output and drew attention to the need to keep track of the downward risks to the national economy.

The next meeting of the Bank of Japan is scheduled for 26 January. Subsequent meetings of the Regulator will be held on 18 February, 16 March, 8 April, 23 May, 15 June, 16 August, 15 September, 14 October, 14 November, 13 December.
Note, that on 13 January the meeting of the Democratic Party of Japan (DPJ) will be held, which can also have a short term impact on the pair USD/JPY.

Representatives of the Monetary Policy Committee of the Bank of Japan stated earlier that situation in the national economy is fully consistent with the expectations that were reflected in the October release; however, regulator’s attention is still focused on the risks to the economy, as the downward risks can hamper transition from deflation to inflation in the country. 

 
 

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