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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 soar

At the Forex currency market the Japanese yen continues to grow on Wednesday.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY; however it goes down confirming a previous sell signal for the pair. Stochastic Oscillator started forming a pair buy signal today.

Forex recommendations: if current external background will be maintained and investors’ bearish sentiments intensify, traders’ targets will be the levels of 82.00 and 81.80.

New Japanese economic statistics was not published in the mid-week; therefore external background remains the main driver.
A lot of macro-economic statistics was published yesterday which was assessed mostly as positive by investors (unemployment rate in November: 5.1% against 5.1 % in October; a change in the employment rate in November: -80 thousand y/y; net CPI in November: -0.5% y/y against -0.6% y/y in October; preliminary volume of retail sales in November: +1.3% y/y against revised to -0.2% m/m in October; preliminary volume of industrial output in November: +1/0% m/m against expectations of _0.8% m/m and -2.0% m/m a month earlier.

Unemployment remained in the previous level as expected.
Worth noting fact is that although deflation started it retreat; nevertheless its effect is still quite strong. The levels of industrial output showed positive rise for the first time over a few months which can became an indication of the recovery in the sector, which will lead to the recovery of the entire Japanese economy. 

At the meeting which was held this week, 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.
 
 
 

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