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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 is making attempts to grow again

The Japanese Yen rate continues to demonstrate eagerness to grow at the Forex currency market on Friday.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY; however it goes down, creating conditions for sales of the pair. Stochastic Oscillator has left the oversold zone on Friday and is giving a similar signal.

Forex recommendations: in case of breakdown at the level of 83.80 traders’ targets will the levels of 83.60 and 83.00.

Macro-economic background in Japan is quiet today; minor news, published this morning, showed that average level of wages in Japan (revised value) increased by 0.5% y/y in October against preliminary estimate of +0.6% y/y

In other respects, the situation in Japanese economy has remained unchanged.
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.

Investors’ attention was focused on Tankan report yesterday, it 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.

 

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