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Japanese Yen rate is traded upward at the Forex currency market on Friday; while the USD is in the position of the outsider, due to expectations of the macro-statistics on the U.S. employment sector tonight.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY, and it goes up, giving a weak buy signal, and is prepared to break through the signal line. Stochastic Oscillator goes up slightly in the neutral zone, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 77.00, the pair will go to 77.20 and 77.40. If   upward breakdown does not take place, the pair will aim to 76.40.

New Prime-Minister of Japan Yosihiko Noda has formed a new cabinet: particularly, Jun Adzumi will become a new Finance Minister. 

The data released today showed that capital expenditures excluding financial companies in Japan fell by 7.8% y/y  in Q2 against the growth of 3.0% y/y a quarter earlier.

As it became known earlier number of begun housing construction in Japan rose by 21.2% in July against the growth of 5.8% in June. In addition, preliminary volume of industrial output in Japan increased by 0.6% m/m in July against the growth of 3.8% a month earlier. The data was weak, which was to the advantage of the growing Yen, which normally moves in the direction opposite to the markets’ sentiment.

According to previous estimates of the Bank of Japan, real level of GDP will rise by 0.4% in the fiscal year of 2011 (forecast of April had been more optimistic: +0.6%). In the fiscal year of 2012, GDP growth is expected in the volume of 2.9% which would agree with the April forecast. Next year CPI is predicted to be at the level of +0.7%. Real GDP in Japan decreased by 0.2% on quarterly basis (-1.3% y/y) in Q2. GDP fell less than expected, and Minister of Finance of the country of the rising sun said that Japan will demonstrate the rise of economy next quarter.

Note: that Rating Agency Moody's reported that rating of Japan had been downgraded to AA3. According to Moody’s the country is under the threat of high level of budget deficit, which has already reached 200% of GDP. In addition, the memorandum has mentioned aftermaths of the disaster in March and ministerial changes that take place too often in the past five years. In addition, Japanese authorities also said that they are going to invest up to $100 billion to fight against expensive Yen.

The fight against expensive JPY is one of the three guidelines of the new cabinet.

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