Forex Analytics from LiteForex of 04.11.10: JPY: Japanese Yen goes up again after a break

The rate of the Japanese Yen consolidates again after several days of break at the Forex currency market on Thursday.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY, however it goes down giving a pair sell signal. Stochastic Oscillator is giving a similar signal being in the neutral zone.

Forex recommendations: If the current external background maintains and in case of breakdown at the level of 80.75, the pair will go to 80.40 and 80.20.

Japanese markets were closed yesterday due to the holiday. The Bank of Japan meeting is scheduled for tomorrow to take decisions on the interest rate levels (most likely they will be kept unchanged); it is also expected that volume and implementation plan of the assets redemption program to support country’s economy will be discussed there.

The minutes of the Bank of Japan last meeting was released this week. 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.

Meanwhile, as it was noted earlier the Bank of Japan expects 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 last 25 months.

Japanese Finance Minister Mr. Noda noted earlier 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.
 

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