Japan: Japanese Yen accelerates its growth

At the Forex currency market the Japanese Yen rate continues to grow due to the support from macro-economic indicators today.

Forex forecast: MACD indicator is still in the positive area for the pair USD/JPY and it still continues to descend, confirming a previous sell signal for the pair. Stochastic oscillator is still in the oversold zone. 

Forex recommendations: if the current external background is maintained traders’ targets today will be the levels of 82.10 and 81.80.

We should not forget that the market is thin today and currencies movement can be unpredictable.
The following Japanese data was released today:
– Net CPI in November -0.5% y/y against -0.6% y/y in October;
– Household spending in November: -0.4% y/y against expectation of +0.3% y/y and -0.4% y/y in October;
– Changes in the employment rate in November: -80 thousand  y/y;
– Preliminary volume of industrial output in November: +0.8% m/m and -2.0% m/m a month earlier;
– Preliminary volume of retail sales in November: +1.3% y/y against revised level of -0.2% m/m in October;
– Unemployment rate in November: 5.1% against 5.1% in October.

Worth noting fact is that although deflation started it retreat; nevertheless its effect is still quite strong. The levels of industrial output showed positive rise for the first time over a few months which can became an indication of the recovery in the sector, which will lead to the recovery of the entire Japanese economy. 

Unemployment remained in the previous level as expected.

At the meeting which was held this week, the Bank of Japan announced the decision to leave interest rate unchanged in the target range of 0-0.1% per annum. The vote was unanimous. In the follow-up comments the regulator emphasized that assessment of economic situation remained unchanged and economic growth will be slow and small for some time. Nevertheless, Japanese economy continues to demonstrate signs of moderate recovery. In addition, the Bank of Japan lowered its forecasts for industrial output and drew attention to the need to keep track of the downward risks to the national economy.

 

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