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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 continues to consolidate

The Japanese Yen rate continues to consolidate at the Forex currency market on Tuesday for the fifth consecutive session. Although the purchase volume is not high, the trend is obvious.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and continues to go up, confirming a pair buy signal. Stochastic Oscillator continues to give a pair sell signal today being in the neutral zone.

Forex recommendations: if bearish sentiment intensifies and in case of breakdown at the level of 82.30 traders’ targets will be the levels of 81.70 and 81.30.

It became known this morning that revised volume of industrial output in Japan increased by 1% m/m in November which became the first factor of the indicator’s growth over half a year. At the same time capacity utilization rose by 1.6% m/m in November against the previous fall by 2.3% and the ratio of stocks and supplies was revised to -8.3% m/m in November against the growth by 8.4% m/m in October.

It is worth noting that the growth of industrial production was supported by the output volume of the cars (+4.5% in November against preliminary forecast of growth by 4.4% m/m which became the first fact of growth in 7 months).
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.

According to the quarterly report of the Bank of Japan on the state regional economies, 7 out of 9 regions have lowered their growth estimates. At the same time 7 regions reported slowdown of economic recovery process (Sakura report). In addition, levels of industrial production also fell in the regions and capital expenditures have increased.

The head of the Bank of Japan Mr. Shirakawa said earlier this week that Japanese economy demonstrates signs of moderate recovery; however its pace is slowing down. Nevertheless, country’s economic recovery will be resumed as soon as some urgent issues will be resolved. Shirakawa did not address the issues of the Yen’s rate and its affect on the domestic economy, which was noted by the market. It became known earlier that number of orders in machine -building sector fell again for the third consecutive month, due to the obscure outlooks for the future; companies are not in a hurry to increase the level of expenditures on rates and equipment. High level of Yan can become a constraint in this case.

 

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