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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 consolidates on Wednesday

At the Forex currency market the Japanese Yen rate began to grow in the mid-week. Nevertheless, the pair USD/JPY remains in the range of 82.66-83.68 so far.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and is moving along the signal line today preventing from forming a clear signal. Stochastic Oscillator is giving a pair sell signal, coming out of the overbought zone.

Forex recommendations: if current sentiments at the market will be maintained and in case of breakdown at the level of 83.00, traders’ targets will be the levels of 82.70 and 82.50. More distant bearish target is 82.00.

It became known today that the growth of money supply M2 in Japan amounted to 2.3% y/y in December which became the weakest growth rate since March 2009. In addition, indicator M3 increased only by 1.8% y/y which is lower than the level of 2.0% in November.
Worth noting that there is no historical basis for M3 yet- the indicator was introduced by the Bank of Japan recently, therefore the levels of economic activity are assessed by M2.

Furthermore, levels of demand for bank lending in the Land of the Rising Sun remain weak: the indicator fell by 1.9% y/y in 2010 which became the first factor of decrease since 2005. Recall that in 2009, in year of crisis the indicator increased by 2.2%.
Interest rate of the Bank of Japan is at the minimal level of 0.1% per annum. 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. Tomorrow 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.

Today’s demand for the Japanese Yen can be attributed to optimism at the market; the currency does not have other grounds for significant consolidation. 

 
 

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