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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 remains in the range, awaiting new signals

At the Forex currency market the Japanese Yen rate decreases on Monday, not going out of the previous range of 82.60-83.70.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and is going up, giving a pair buy signal. Stochastic oscillator is giving an antipodal signal today, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: if bullish sentiment intensifies for the pair USD/JPY and in case of breakdown at the level of 83.00, buyers’ targets will become the levels of 83.40 and 83.75. Otherwise the pair will continue to consolidate close to the current levels.

According to the quarterly report of the Bank of Japan on the state regional economies, 7 out of 9 regions have lowered their growth estimates. At the same time 7 regions reported slowdown of economic recovery process (Sakura report). In addition, levels of industrial production also fell in the regions and capital expenditures have increased.

The head of the Bank of Japan Mr. Shirakawa said earlier this week that Japanese economy demonstrates signs of moderate recovery; however its pace is slowing down. Nevertheless, country’s economic recovery will be resumed as soon as some urgent issues will be resolved. Shirakawa did not address the issues of the Yen’s rate and its affect on the domestic economy, which was noted by the market. 
It became known earlier that number of orders in machine -building sector fell again for the third consecutive month, due to the obscure outlooks for the future; companies are not in a hurry to increase the level of expenditures on rates and equipment. High level of Yan can become a constraint in this case.

We would remind that last week, Prime Minister of Japan Khan presented a new Cabinet of Ministers; the old government had resigned. Thus, Yoshihiko Noda will become Finance Minister again, Kaoru Yosano will take the post of Minister of Economic and Fiscal Policy and Barney Qaeda will be Minister of Trade.

Interest rate of the Bank of Japan is at the minimal level of 0.1% per annum. The next meeting of the Bank of Japan is scheduled for 26 January. Subsequent meetings of the Regulator will be held on 18 February, 16 March, 8 April, 23 May, 15 June, 16 August, 15 September, 14 October, 14 November, 13 December.

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