JPY: Japanese Yen continues to go forward

The Japanese yen rate continues to go up smoothly at the Forex currency market today.

Forex forecast: MACD indicator for the pair USD/JPY in at the intersection with the signal line and directs upward. Stochastic Oscillator remains in the overbought zone today, however it is sliding down, giving  a pair sell signal.

Forex recommendations: considering current market sentiments and in case of breakdown at the level of  83.50, traders’ targets will be the levels of 83.10 and 82.70.

It became known this morning 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.

As it became known on Tuesday, at the last meeting the Bank of Japan decided to keep interest rate unchanged, in the range of 0-0.1% as expected. Nevertheless the regulator reported that he increased   economic assessment, which became the first such factor over 9 months.

According to the regulator, Japanese economy is overcoming a recession stage amid increased rates of exports and other constituents. The head of the Bank Mr. Shirakawa said today that GDP in the country can show acceleration in the current quarter due to the increased demand from abroad.

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