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At the Forex currency market the Japanese Yen rate remains high on Friday –yesterday’s attempt of correction had failed, which led the JPY to local highs. Demand is still preserved from those investors who prefer to wait in the “safe harbor” until the time of turbulence is over.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY, and is going down, giving a sell signal. Stochastic Oscillator has come to the overbought zone and is giving a sell signal.

Forex recommendations: in case of breakdown at the level of 76.10, the pair will go to 75.90 and 75.70.

If downward breakdown does not take place, the pair will consolidate at the current levels. Yesterday’s attempt of the “Bulls” to recoup was not successful because external background deteriorated again; therefore the demand in the Yen went up.In the middle of this week investors discussed unsuccessful attempt of Bank of Japan to conduct intervention.

The Bank of Japan does not make any comments on this, maintaining its existing position: quick reaction in case of need. It became known earlier that revised industrial output in July rose by 0.4% m/m against preliminary value of +0.6% m/m, which is logical since the decline that is being observed in all sections was caused by the slowdown of the world economy.

Statistics released earlier showed that real revised GDP in Japan fell by 0.5% q/q (-2.1% y/y) in Q2 against the forecast of -0.5% q/q (-2.0% y/y) and previous level of -0.3% q/q. Statistics released yesterday showed that bank lending fell by 0.5% in August against the decline of 0.6% in July.

In addition, index of economical observers who monitor current situation fell to 47.3 points in August against the level of 52.6 points in July. As long as investors continue to flee from risks, the pair USD/JPY will remain under pressure. 

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