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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 grow on Tuesday

At the Forex currency market the Japanese Yen continues to go up on Tuesday amid the USD weakness.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY, however it goes down which gives grounds for a pair sell signal. Stochastic Oscillator is giving a pair buy signal, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 83.60 the pair will go to 83.85 and 84.10. If the level of 83.10 is exceeded, traders’ targets will become the levels of 82.80 and 82.50

Basic news from Japan today was as follows: level of industrial output in October was revised; the reduction was by 2.0% m/m against preliminary data of -1.8% m/m.

It is obvious that the data today is an indication of poor state of economy in the country of the Rising Sun.
As noted in the report of the Japanese Ministry of Economy, Trade and Industry the decrease was mainly caused by the lower demand for cars and electronics.

Last Friday the Bank of Japan stated that they intend to continue implementing the program of financial stability further on; they also emphasized that the world financial system is still far from being stable.

Consumer confidence in the Land of the Rising Sun continues to decline for the fifth consecutive month. Is seems that people are still guided by the fears of the economic instability in the country which can affect labour market and wage levels.
People belief that the time is not ripe for purchasing large goods also decelerates recovery of confidence.

Long-awaited data on the Japanese level of GDP in QIII was published earlier; real GDP was revised to +1.1 q/q (+4.5% y/y) against preliminary estimate of +0.9%.  It is interesting that according to the Japanese Cabinet, the rise in index was promoted by the growth in private sector consumption, which usually accounts to about 60% of GDP. Special demand was observed in the energy-efficient cars for the reason that period of subsidy provided for them will expire soon.

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