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At the Forex currency market the Japanese Yen rate is traded upward on Friday paying no attention to the BoJ meeting held the day before.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and rises slightly, giving a weak buy signal. Stochastic Oscillator is sliding in the neutral zone, giving a sell signal.

Forex recommendations: in case of breakdown at the level of 76.60, the pair will go to 76.30 and 76.10. If breakdown does not take place, the pair will consolidate at the current levels.

The two-day BoJ meeting finished today as an outcome of which the Bank decided to keep the rate unchanged at the level of 0.10% as expected. In its comments to the decision the BoJ said that it would move on with the credit program till April, 30. At the same time the Bank didn’t provide any extra stimulus waiting for more sound results. The volume of assets’ purchase was kept unchanged at JPY50 trln.

Fundamentally the national economy is stable to the extent possible after the March quake. Still the expensive JPY influence is likely to provoke some talks of fiscal easing.

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. A solid set of macroeconomic data was released at the end of the previous week: overall nationwide CPI totaled +0.2% y/y in August against the forecast of +0.1% y/y, Household spending totaled -4.1% y/y in August against the forecast of -2.8% y/y. Besides it became known that Unemployment Rate decreased to 4.3% in August against both the forecast and previous level of 4.7%.

Tankan survey released this week showed that big manufacturing diffusion index totaled +2 points against the forecast of +3 points, big non-manufacturing diffusion index amounted to -11 points against the forecast of -14 points and -21 points seen previously. 

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