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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: Positive indicators in economy promote growth Japanese Yen

The Japanese Yen rate regains after yesterday’s fall at the Forex currency market on Friday.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and tends to continue the fall, giving a pair sell signal. Stochastic Oscillator revolves a signal today, being in the neutral zone.

Forex recommendations: if bearish sentiment for the pair intensifies, traders’ targets today will be the levels of 82.50 and 82.10.

Therefore, two factors are in benefit for the Yen today: investors’ interest in secure assets due to the increased uncertainty in the market and Japanese statistics which, in general, turned out to be favourable.

The following Japanese data was released today;

– Net CPI in December: -0.4% y/y against:  -0.5% earlier;

– Unemployment rate in December: 4.9% against 5.1% in November;

– Preliminary retail sales in December: -2.0% y/y against +1.5% in November;

– Consumer expenditures in December: -3.3% against the forecast of -0.6%.

The data on unemployment and on the number of new jobs was a positive factor for the Japanese economy; however consumer sector is still in crisis.

It is interesting, that Japanese data released yesterday was quite good: trade balance of the country increased to the level of  Y727.7 billion (earlier +Y161.1 billion), exports rose by 13.0% y/y in December, while imports grew by 10.6% y/y.

However, we should keep in mind that yesterday, rating agency S&P reported downgrade of Japan to the level of AA- which led to the massive sales of the JPY. Later, representatives of the agency Fitch stressed that Japan needs more stable financial policy than it is now.

A two-day meeting of the Bank of Japan finished the day before yesterday; at the meeting it was decided to keep interest rate in the previous target range of 0-0.1% per annum.  The head of the Bank of Japan Mr. Shirakawa noted in the follow- up comments that the country continues to move towards achieving price stability and at the moment both upside and downside risks to the economy are stabilized.

 

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