JPY: Demand for Japanese Yen has not been observed at the end of the week

The Japanese yen rate is traded downward at the Forex currency market on Friday, being technically corrected after the growth yesterday.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY and is going up, giving a pair buy signal. Stochastic oscillator has come out of the overbought zone today and is giving a pair sell signal.

 Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 83.10 the pair will go to 82.50 and 82.20. If the level of 83.50 is exceeded, buyers’ targets will be the levels of 83.70 and 83.90.

The minutes of the last meeting of the Bank of Japan on 25-26 January, released today were just a standard document without any further details. Judging by the minutes, it is not yet clear whether the   continuation of the Japanese economy stabilization is worth waiting in the nearest future.

«Only a few committee members think that it is necessary to consider a possibility that steady growth of the global prices for the raw products will have a negative impact on the companies’ profit”. –said the minutes. “Part of the representatives stated that although there is high possibility that economy will revert to the moderate economic recovery, its future remains uncertain yet.

It became known yesterday that revised index of leading indicators in Japan increased by 0.8% in December; while index of coincident indicators was revised to+1.1%. As macro-data showed yesterday, actual GDP declined by 0.3% q/q (forecast-2.0% y/y) in QIV, 2010; index of capital expenditures increased by 0.9% q/q in QIV against +1.5% in QIII. Therefore, the main publication earlier this week- Japanese GDP was above forecasts, however this effect can be temporary, since the economy of the country is still in the complex situation.

Experts of the Nomura Bank reported this week that the economy of the Country of the Rising Sun is out of the wood; the worst stage has been struggled through and the process of economic recovery will accelerate. It agrees with the assessment of the Bank of Japan which emphasized that Japanese economy is strong enough now to cope with consequences of temporary recession.

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