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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 pay attention to the Bank of Japan

The Japanese Yen rate is traded upward at the Forex currency market on Tuesday. The Yen has hardly responded to the meeting of the Bank of Japan.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and continues to move along the signal line, not giving a clear signal. Stochastic oscillator is giving a pair sell signal, being in the neutral zone.

Forex recommendations: if bearish sentiment for the pair intensifies and in case of breakdown at the level of 82.10 traders’ targets will become the levels of 81.75 and 81.30.

A two-day meeting of the Bank of Japan finished this morning; at the meeting it was decided to keep interest rate in the previous target range of 0-0.1% per annum.  The head of the Bank of Japan Mr. Shirakawa noted in the follow- up comments that the country continues to move towards achieving price stability and at the moment both upside and downside risks to the economy are stabilized.

Monetary politician also stressed that Japan will resume recovery sooner or later; while the growth in QI 2011 still remains disputable.
Shirakawa expressed confidence that export levels will also begin to increase.

We would remind that there are still deflation problems in the Country of the Rising Sun and the longer they last the harder will be the rehabilitation. The Yen, meanwhile, is traded in its own way, not paying much attention to the reaction of the Bank of Japan.

Japanese Minister of Economy Mr. Yosano expressed hope last week that the JPY will be traded at the adequate levels. In addition, the head of the Bank of Japan Shirakawa and Prime Minister Khan exchanged views on the current situation in the Japanese economy and the world; Shirakawa drew attention again to the priorities of monetary policy in Japan.

Japanese statistics, released last week was favorable. Thus, revised volume of industrial output in Japan increased by 1% m/m in November, which became the first factor of 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.

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