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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: Japanese Yen can resume growth in mid-week

The Japanese Yen rate determines movement direction at the Forex currency market in the mid-week and it is possible that the JPY will resume consolidation in the coming days.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and continues to descend, confirming a previous sell signal for the pair. Stochastic Oscillator is giving an antipodal signal today, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 82.10 the pair will go to 82.40 and 82.65. If the level of 81.90 is broken down, traders’ targets will be the levels of 81.70 and 81.50. A more distant bearish target is 81.30.

Further developments for the pair USD/JPY will largely depend on the U.S. statistics, in particular employment rate excluding agricultural sector in the USA, if data is positive the USD will start to regain from the losses in the pair.

Internal political shifts in Japan can be the reason for a short term decline of the JPY; the press says that on 14 January Prime Minister Khan can arrange cabinet reshuffle.

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 meeting of the (DPJ) Democratic Party of Japan will be held, which will also affect the pair USD/JPY on short terms