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JPY: Japanese Yen reverted to growth
At the Forex currency market the Japanese Yen rate is trade dupward on Friday. Market temporarily distracted from the idea of globaleconomic collapse which immediately affected trades.
Forex forecast: MACD indicator for the pair USD/JPY continues to go down in the negative area, volumes are increasing,which all together gives a sell signal. Stochastic Oscillator is going downagain, giving a similar signal.
Forex recommendations: : in case of breakdown at the level of 76.65, the pair will go to 76.50 and 76.45.
Macro-economic background in Japan is calm on Friday, although Mr. Azumi keeps reiterating that it isnecessary to monitor external influence and the Yen. Statistics released thismorning showed that diffusional index of consumer sentiments increased by 4.9points and amounted to -57.5 points versus to -62.4 points in September.
Statistics released earlier showed that trade balance in Japan was at the level of -Y496.5 billion inDecember. In addition, bank lending increased by 0.5% y/y in December againstthe growth of 0.2% y/y in November.
Minutes of the last meeting ofthe Bank of Japan released earlier, stated that it is necessary to trace backthe effect of the recent soft policy; potential impact from the expensive Yenalso causes special concern.
Mr. Shirakawa, the head of the Bank of Japan noted earlier that growth of the JPY continues to negatively impact on thelocal economy and that current rise of the JPY was provoked by European crisis.He believes that if appropriate measures are not taken straight away, economy of Japan will decline sharply by 2030. Mr. Shirakawa also noted that interventions against Yen are acceptable and effective.
We would remind that a meeting of the Bank of Japan, which was held in December, was gloomy. Thus, the regulatornoted that growth of economic activity has slowed down and activity in Japaneseeconomy is zero. The Bank has revised economic situation assessment downward incomparison with November, which is logical. Japanese economy will start to recover as soon as pressure from Europe diminishes. In addition, interest ratein the country was left unchanged at the level of 0.1%. This decision had been expected.
