Forex Analytics from LiteForex of 03.11.10: JPY: Japanese Yen is in the narrow range without new signals

At the Forex currency market the Japanese Yen rate continues to be in the narrow channel of 80.29-80.90 as there are no new catalysts for the movement,

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY, however it goes up, giving grounds for a pair buy signal. Stochastic Oscillator is giving a similar signal today, being in the neutral zone.

Forex recommendations: if the current external background maintains and in case of breakdown at the level of 80.80 the pair will go to 81.10 and 81.50.

It is a day off in Japan today; The Japanese Bank new decision on rates will become known on Friday. The meeting was rescheduled for the earlier date to give monetary politicians a chance to discuss issues of additional redemption of securities from the market in order to support country’s economy.

Japanese Finance Minister Mr. Noda noted yesterday that currency market movement has a negative impact on the risks in economy as well as the concerns regarding external economy state. In his view, Japanese economy is stagnating now and its growth will be resumed only in case of the appropriate policy. He also stressed that authorities take all efforts to fight deflation.

The minutes of the Bank of Japan last meeting was released on Tuesday. It says that some of the bank members believe that the production volume can reduce sharply in Japan in QIV and the recovery time frame looks very blurry. Many members of the Bank are concerned about the high rate of the Yen.

As it was noted earlier the Bank of Japan expect that Japanese economy will be back on the path of the moderate growth in 2011 while basic inflation average forecast still amounts to 0.4%. Average forecast of the actual GDP level for the next fiscal year is at the level of +2.1% against the forecast of 2.6% in July. The head of the Bank Shirakawa noted that monetary policy easing will be carried more active than before as the economy proceeds along the course of recovery. 

As the data showed on Monday, average basic salary in Japan increased by 0.1% y/y in September against the previous decline by 0.2% which became the first growth factor over the past 25 months.

 

 

 

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