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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 continue to withdraw from local highs under pressure from USD

The Japanese Yen rate continues to withdraw from the local highs at the Forex currency market on Tuesday following the publication of the favourable data on the U.S. economy which inspired investors with the idea of rapid recovery of the American economy. However, it is still too early to speak about trend reversal in the pair.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and continues to go down, confirming a previous sell signal for the pair. Stochastic Oscillator has left the oversold zone and is giving a pair buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex:  in case of breakdown at the level of 82.50 and amplification of the bullish sentiments for the pair, buyers’ targets will become the levels of 82.70 and 82.90. If an upward breakdown will not take place, the pair will consolidate close to the current levels.
There were no publications of Japanese important macro-statistics today therefore, the main factor for the pair’ movement will continue to be external background.

The pair USD/JPY started rebound from the many weeks lows of 80.93 – we would remind that the lows of 31 October 2010 was the level of 80.29 which the pair has not reached this time.

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.

 

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