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 has quickly started reversed motion

At the  Forex currency market the Japanese yen has reversed movement direction as soon as the U.S. Federal Reserve decision to keep interest rate and volume of QE2 program at the previous level became public. The decline of the Yen continues today.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY and it moves along the signal line, therefore it has not formed a clear signal. Stochastic Oscillator is giving a pair buy signal, being in the neutral zone.

Forex recommendations: if bullish sentiments intensify for the pair, buyers’ targets will be the levels of 84.00 and 84.40.

A lot of Japanese statistics was released today. Worth noting is Tankan report which showed decline for the first time in 7 quarters – up to the level of 5 against the previous level of 8 and the forecast of 3. Quarterly report of the Bank of Japan which shows sentiments in the business circles of the country once again confirmed the fact that Japanese indicators of QIV will be weak, which will indicate downturn in economy.
Market believes that Tankan indicator will go down to -2 by March 2011 which will mean that pessimists dominate over optimists in the business-class of Japan.

Previous long awaited Japanese GDP data for QIII looks fabulous against this background. 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. It is unlikely that we will be able to see similar results in QIV.

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.

Therefore, a run of bad luck continues for Japanese economy.

[More]
Tags:
Tags Cloud: pair prices customers political market data credit undermine trends interest rate best forex day trading