The Japanese Yen rate continues to retreat at the Forex currency market on Wednesday under the pressure from investors’ optimism regarding consecutive recovery of the global economic system.
Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and is still going down, giving grounds for a pair sell signal. Stochastic Oscillator is in the overbought zone, creating conditions for the reverse movement direction.
Forex recommendations: currently bullish sentiment dominates in the pair and if it maintains, buyers’ targets today will be the levels of 83.00 and 83.60.
Representative of the ICF Mr. Shinohara said today that current price levels of the Yen are consistent with fundamental factors, while fiscal situation in Japan remains unfavourable, According to him ICF is concerned about rising prices for food.
The following Japanese data was released on Wednesday:
– Consumer confidence index in January: 41.1 against 40.1 in December;
– Orders for industrial equipment in January: +89.4% against +64.0% in December.
The data released yesterday was also positive:, current account balance in Japan increased by 30.5% y/y in December, to the level of +Y1.195 trillion. Maintenance of stability in economy is the most important magnet for investors, who transfer their assets into Japanese currency. As it became known this morning level of corporate bankruptcies in Japan reduced by 5.52% m/m in January, to the level of 1041. Reduction of bankruptcies and growth of the balance of payment surplus of the country are the indications of the national currency consolidation.
Worth noting that earlier representative of the Bank of Japan Mr. Kamezaki stressed that economy in the Country of the Rising Sun will overcome the phase of deceleration by spring; nevertheless careful monitoring of the developments is still required at Forex, where sharp fluctuation of currencies remains unwanted.
Monetary politicians anticipate high risk of downward movement from the USA and Europe. In Japan downside and upside risks appear balanced at the moment. Kamezaki also emphasized that Japan shall resolve its debt problems quickly, before the country losses creditability.