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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 does not cease efforts to recover

At the Forex currency market the Japanese Yen rate continues to demonstrate weak attempts to recover.

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

Forex recommendations: if bearish sentiments intensify for the pair, traders’ targets will become the levels of 83.10 and 82.80.

The following Japanese news was released today:

- Corporate goods prices in November: +0.9% y/y against +0.8% in October;
- Index of business conditions for large companies: -0.9% in QI, +0.8% - in QII;
- Consumer confidence index in November: 40.4 against 40.9 in October.

Thus, 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 salary levels.

People belief that the time is not ripe for purchasing large goods also decelerates recovery of confidence.

Yesterday long-awaited data on the Japanese level of GDP in QIII was published; 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.

However, economists do not console themselves with illusions that results of the fourth quarter will be as inspiring. On the contrary, all predictions are now reduced to the fact that the data in the current quarter will be weak, since the economy continues to decline.

As it became known on Tuesday, index of coincident indicators in Japan declined to 100.7 in October against expectations of 100.8. The data today demonstrated the second consecutive reduction of the indicator. The index of leading indicators fell for the fourth time in a row, to the level of 97.2.

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