Forex Analytics from LiteForex of 15.11.10: JPY: Japanese Yen goes further from the highs

The Japanese Yen continues to go down in pairing with the USD at the Forex currency market today, as investors cannot determine their attitude to
risks; so they use the USD as a safe harbor.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY and it goes up, giving a pair buy signal. Stochastic Oscillator is giving a
similar signal, being in the overbought zone.

Forex recommendations: buyers' targets today will be the levels of 83.30 and 83.85.

According to the data released at the beginning of the week, industrial production in Japan reduced by 1.6% in September against the previous level
of 1.9%. However, the declining trend has been in effect for the 4th consecutive months.

Revised data for QIII showed -1.8% (preliminary index was -1.9%) against the growth by 1.5% in QII.
In addition it became known that real GDP in Japan increased by 0.9% q/q (+3.9% y/y) in QIII. However it should be understood that such fair growth
of the domestic economy took place owing only to the measures of stimulation.

Minister of Economy Mr. Qaeda noted earlier this week that Japanese economy will remain weak for some time; therefore risks should be carefully
monitored. At the same time according to the politician, GDP rise could have been more rapid in QIII if only the rate of the Yen were not so high as to
put pressure on the exports and imports levels.

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 that according to the Bank of Japan expectations, 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.

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