JPY: Japanese Yen awaits new signals, still being within the range

At the Forex currency market the Japanese Yen rate is going down slightly on Thursday, remaining in the range of   82.50-83.68.

Forex forecast: ?ACD indicator is in the negative area for the pair USD/JPY; however it continues to grow steadily, confirming a previous buy signal for the pair.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 82.80 the pair will go to 82.50 and 82.20. If the level of 83.20 is broken down, buyers’ targets will be the levels of 83.50 and 83.70.

The following Japanese statistics was released today:

– Orders for equipment and machine tools in December:-63.5% y/y against +104.2% in November;

– Net orders in machine building sector in November: -3.0% m/m, +11.6% y/y against the forecast of +1.9% m/m and -1.4% m/m, +7.0% y/y in October.

According to statistics number of orders in machine -building sector fell again for the third consecutive month, due to the obscure outlooks for the future; companies are not in a hurry to increase the level of expenditures on rates and equipment. High level of Yan can become a constraint in this case.

Statistics can make economists feel worry: if effects from the previous incentives of the government will fade away just as fast then the economic recovery process will slow down be even more intensive.

Interest rate of the Bank of Japan is at the minimal level of 0.1% per annum. The next meeting of the Bank of Japan is scheduled for 26 January. Subsequent meetings of the Regulator will be held on 18 February, 16 March, 8 April, 23 May, 15 June, 16 August, 15 September, 14 October, 14 November, 13 December.

Today, on 13 January the meeting of the Democratic Party of Japan (DPJ) will be held, which can also have a short term impact on the pair USD/JPY.

 

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