At the Forex currency market the Japanese Yen rate virtually stands still, moving away from the local highs over the past few sessions.
Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and continues rush down, indicating a pair sell signal. Stochastic Oscillator goes up today, 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 82.50, the pair will to 82.80 and 83.00. If the level of 82.20 is broken down, traders’ targets will be the levels of 82.00 and 81.60.
There was no news on Japan today; therefore the currency will take advantage of the external background to large extent.
It became known yesterday that revised volume of industrial production in Japan increased by 1% m/m in November, which has become the first fact of growth rate for 6 months. At the same time capacity utilization rose by 1.6% m/m in November against the previous fall by 2.3% and ratio of stock and supply in November was revised to -8.3% m/m against the growth by 8.4% m/m in October.
Worth noting that the growth of industrial production had been supported by the production of cars (+4.5% in November against prior forecast of growth by 4.4% m/m, which became the first fact of growth for 7 months)
Interest rate of the Bank of Japan is at its lowest level of 0.1% per annum. The next meeting of the Bank of Japan is scheduled for 26 January. Other meetings of the regulator will be held on 16 March, 8 April, 23 May, 15 June, 16 July, 15 September, 14 October, 14 November, 13 December.
According to the quarterly report of the Bank of Japan on the state of regional economies, 7 out of 9 regions downgraded their growth estimates. 7 regions reported slowing down of the economic recovery process (Sakura report). In addition level of industrial production decreased in the regions, while level capital expenditures increased.