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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 regaining part the last week losses

The Japanese Yen rate began to regain from the fall of the last week at the Forex currency market on Monday amid renewed interest of investors to safe assets

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY, however it is still going up, confirming a previous buy signal for the pair. Stochastic Oscillator has come out of the overbought zone today, giving grounds for a pair sell signal.

Forex recommendations: considering external background, sales can be increased for the pair today in case of breakdown at the level of 83.10 and after that traders’ targets will be the levels of 82.70 and 82.50.

The following Japanese data was released today:

– Actual GDP in QIV, 2010: -0.3% q/q, -1.1% y/y (forecast -2.0% y/y);

– Index of capital expenditures in QIV: +0.9% q/q against +1.5% in QIII.

Thus, the most important publication of today - Japanese GDP appeared to be better than expected, although this effect can be temporary since the economy of the country is still in a complicated situation.

Economists, however do not exclude that recovery of Japanese economy in coming quarters can be more dynamic, based on the stable exports levels. Note that net level of export reduced by 0.7% last quarter against the forecast of decline by 1.6. Finance Minister of Japan Mr Yosono noted this morning that economy in the Country of the Rising Sun would recover, however monetary authorities shall continue to monitor all possible risks carefully. In addition, Japan is planning to enter into close relations with China where economic growth has never come across problems.

Worth noting that representative of the Bank of Japan Mr. Kamezaki stressed earlier that economy in the Country of the Rising Sun would overcome the phase of deceleration by spring; nevertheless careful monitoring of the developments is still required at Forex, where sharp fluctuation of currencies remains unwanted.

At the same time monetary politician anticipates high risk of downward pressure from the USA and Europe. In Japan downside and upside risks appear balanced at the moment.  Kamezaki also emphasized that Japan shall resolve its debt problems quickly, before the country losses creditability.

 

 

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