Forex Analytics from LiteForex of 11.11.10: JPY: Japanese Yen has not determined movement direction

At the Forex currency market the Japanese Yen rate is traded close to the opening level on Thursday amid instability of the external background.
Forex forecast: MACD indicator is in the positive area for the pair USD/JPY and it goes up, confirming a pair previous buy signal. Stochastic Oscillator
is giving an antipodal signal today, being in the neutral zone.

Forex recommendations: off the market.
Feasible event scenario at Forex: in case of breakdown at the level of 82.40 the pair will go to 82.60 and further to 82.80. If there is a breakdown at
the level of 82.10, traders' targets will be the levels of 81.60 and 81.40. The following Japanese data was released today:
- Prices index for the industrial goods in October: +0.9% y/y against  -0.1% in ASeptember;
- Volume of orders in the machine-building sector in September: -10% against +101% in August.

The Bank of Japan maintained interest rate in the target range of 0-0.1% per annum; at the last meeting the Bank of Japan announced the purchase of the mortgage investment trusts with the rating not lower than AA. 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.

Such prospect seems questionable at the moment, considering the latest statistics and taking into account that deflation continues to progress.

Tuesday's data multidirectional; however negative data prevailed (index of economic observers in October is 40.2 against 41.2 in September, decline
continues for the third consecutive month, bank lending is -2.0 y/y in October, the decrease continues for the eleventh consecutive month.
Domestic background has not provided support to the Yen; external background is not in favour of the JPY's recovery either. In principle it is more
reasonable to stay away of the market until the end of the week for the pair.

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