JPY: Japanese Yen continues to grow, approaching local highs

Japanese Yen rate continues to grow at the Forex currency market on Thursday. It looks like the JPY decided to close this year in the status of the overbought currency, which will not let monetary authorities chill out.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and goes down, confirming a previous sell signal for the pair. Stochastic Oscillator remains in the oversold zone today.

Forex recommendations: if current bearish sentiments will be maintained, targets of the pair’s traders will become the levels of 81.40 and 81.10.
The latest Japanese statistics is still on the side of the JPY buyers. Traders’ sentiments in regards to the USD amid recovering world economy also speak in favor of this scenario.

In general the situation in Japanese economy remains almost unchanged.

Unemployment in the country in November (5.1% against 5.1% in October; change in employment rate in November: 80 thousand y/y) has remained in the previous level as expected.

Worth noting fact is that although deflation started it retreat 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. 
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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