Forex Blog
Blog-FX.Com

• 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 give way to USD

The Japanese Yen rate continues to retreat from the local highs at the Forex currency market on Tuesday, amid decline in investors’ positions in safe assets, since world economy actively indicate steady  recovery process. 

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY, however it is still going down, confirming a previous sell signal for the pair. Stochastic Oscillator tends to come out of the oversold zone today, and it started to create a buy signal for the pair. 

Forex recommendations: if bullish sentiments in the pair continue to dominate in the currency sector and in case of breakdown at the level of 82.25, buyers’ targets today will be the levels of 82.50 and 82.80.

The following Japanese news was released today:

– Unemployment rate in January: 4.9% against 4.9% in December;

– Aggregate employment rate in January: +170 000 m/m against the revised level of +110 000 in December;

– Actual spending of households in January: -1.0% y/y against -3.3% in December;

– Sales of new vehicles in February: -14.3% y/y.

As a representative of Japanese government noted today, employment sector in the country continues to recover, however unemployment rate remains static. The head of the Bank of Japan Mr. Shirakawa said in his speech on Tuesday morning that in his opinion current exchange rate of the Yen does not produce additional risks for the economy and business sentiment in the country is stable despite expensive national currency.

Although the level of industrial production in Japan fell short of expectations (in January: +2.4% m/m (+4.7% y/y) against the forecast of +4.0% m/m), other data have been positive, which proves that the economy has found the way out of recession.

Deflation in Japan continues to retreat – the data on CPI in January, released on Friday, showed reduction in the rate by 0.2% y/y after the decline by 0.4% y/y in December and the forecast of -0.3%. Food and energy resources begun to rise in price in the Country of the Rising Sun – and these are the main factors of inhibition of deflationary loop.

The data released on Wednesday showed deficit of trade balance, which amounted to Y471.4 billion in January against expected level of +Y37.1 billion; although seasonal factor could have been the reason. The level of import prices increased by 1.4% y/y in January against expectations of the rise by 7.4%; the level of import increased by 12.4% y/y (forecast: +8.1% y/y). In addition, the deputy head of the Bank of Japan Mr. Yamaguchi stressed that now high rate of national currency neutralizes the factor of high import prices. In addition, he also drew attention to the fact that there is no need to revise forecasts for economic growth with the account of high oil prices.

 

[More]
Tags:
Tags Cloud: leverage acquainted nations window maturity between forestalls funny forex increased volatile