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JPY: Japanese Yen has stabilized after the fall
The Japanese Yen rate has stabilized at the Forex currency market at the end of theweek after the fall during previous sessions; investors are becoming interested in the JPY again as of a "safe harbor".
Forex forecast: MACD indicator for the pair USD/JPY is inthe positive area and is descending, giving a sell signal. StochasticOscillator has come out of the overbought zone and is steadily growing, givinga buy signal.
Forex recommendations: off the market.
Feasible event scenario at Forex: in case of breakdown at of 77.30, the pair will go to 77.40 and 77.70. If upward breakdown doesnot take place, the pair will consolidate at the current levels. It is becominga habit now to blame the Euro for all problems in the levels of Japanese exports:Finance Minister of Japan Mr. Azumi said on Friday that the fall of the Eurohad caused significant damage to the exports levels, while financialauthorities of Europe are wasting time and do not take essential measures.
Attitude of Japan to this issue is logical:EU shall create a kind of barrier to prevent expansion of the debt problems.
Important Japanese news has not been released.
We would remind that a meeting of the Bank ofJapan, which was held in December, was gloomy. Thus, the regulator noted thatgrowth of economic activity has slowed down and activity in Japanese economy iszero. The Bank has revised economic situation assessment downward in comparisonwith November, which is logical. Japanese economy will start to recover as soonas pressure from Europe diminishes. In addition, interest rate in the countrywas left unchanged at the level of 0.1%. This decision had been expected.
Minutes of the last meeting of the Bank of Japan released earlier, states that it is necessary to trace back the effect ofthe recent soft policy; special concern is caused by the potential impact ofthe expensive Yen. Thehead of the Bank of Japan Mr. Shirakawa noted earlier that growth of the JPYcontinues to negatively impact on the local economy and that current rise ofthe JPY was provoked by European crisis. He believes that if appropriatemeasures are not taken straight away, economy of Japan will decline sharply by2030. Mr. Shirakawa also noted that interventionsagainst Yen are acceptable and effective. However, practical steps to supportthe words have not been made: apparently the Japanese regulator is in the"fly-through mode" presently moreover, the Yen does not give grounds for intervention due to its moderate activity.
