JPY: Japanese Yen continues to gain strength
At the Forex currency market the Japanese Yen rate continues to grow amid weakening of the USD.
Forex forecast: MACD indicator is in the negative area for the pair USD/JPY however it is moving along the signal line and is not giving a clear signal today. Stochastic oscillator is giving a pair sell signal being in the neutral zone.
Forex recommendations: if current bearish sentiment for the pair USD/JPY will be maintained traders’ targets will be 81.75 and 81.30.
Today Minister of Economy Mr. Yosano expressed hope that the JPY will be traded at the adequate levels. In addition, the head of the Bank of japan Shirakawa and Prime Minister Khan exchanged views on the current situation in the Japanese economy and the world; Shirakawa drew attention again to the priorities of monetary policy in Japan.
In November which agreed with the forecast. It became the sixth consecutive factor of growth rate which is a positive indicator.
In addition statistics released on Tuesday was favourable too: revised volume of industrial output in Japan increased by 1% m/m in November which became the first factor of the indicator’s growth over half a year. At the same time capacity utilization rose by 1.6% m/m in November against the previous fall by 2.3% and the ratio of stocks and supplies was revised to -8.3% m/m in November against the growth by 8.4% m/m in October.
The head of the Bank of Japan Mr. Shirakawa said earlier this week that Japanese economy demonstrates signs of moderate recovery; however its pace is slowing down. Nevertheless, country’s economic recovery will be resumed as soon as some urgent issues will be resolved. Shirakawa did not address the issues of the Yen’s rate and its affect on the domestic economy, which was noted by the market. It became known earlier that 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.
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