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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 reverted to recovery, still staying in the range

The Japanese Yen rate started to grow at the Forex currency market on Thursday – however the pair USD/JPY still remains in the price channel due to the lack of strong external drivers.

Forex forecast: MACD indicator is in the intersection with the signal line, crossing it from top to bottom and continuing to give a pair sell signal. Stochastic Oscillator is giving a pair buy signal, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 82.20 the pair will go to 82.50 and 82.75. If upward breakdown does not take place the pair will continue to consolidate close to the current levels.

It became known earlier that unemployment rate in January remained at the level of  4.9% against 4.9% in December and aggregate employment rate in January demonstrated growth by +170 000 m/m against the revised level of +110 000 in December.

As representative of Japanese government noted the day before yesterday, employment sector in the country continues to recover, however unemployment rate remains static. The head of the Bank of Japan Mr. Shirakawa said in his speech on Tuesday morning that in his opinion current exchange rate of the Yen does not produce additional risks for the economy and business sentiment in the country is stable despite expensive national currency.

Although the levels of industrial production in Japan fell short of expectations (in January: +2.4% m/m (+4.7% y/y) against the forecast of +4.0% m/m), other data has been positive, which proves that the economy has found the way out of recession.

In general the situation in Japanese economy remains almost unchanged.

According to the head of the Bank of Japan Mr. Shirakawa the country should keep track of long term consequences which can to some extend affect monetary policy. In addition, the fact that Federal Reserve continues to preserve soft monetary policy has its positive effect on the Japanese economy.

Shirakawa also emphasized that the Bank of Japan would promptly respond to inflation risks and if they occurred, it would render support to economy.

 

 

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