JPY: Japanese Yen continues to lose positions
The Japanese yen rate continues to demonstrate its weakness at the Forex currency market on Thursday.
Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and is sliding down, giving a pair sell signal. Stochastic Oscillator remains in the overbought zone on Thursday and confirms a buy signal, moving in parallel.
Forex recommendations: taking into account current sentiments in the market we can expect that bullish purchases will be continued for the pair with the targets at 83.00 and 83.50/60.
The following Japanese data was released today:
– Net orders in machine-building sector in December: +1.7% m/m against preliminary level of -3.0% and the forecast of +5.0%;
– Index of corporate goods prices in January: +0.5% m/m (+1.6% y/y) against the forecast of +0.3% m/m (+1.4% y/y) and preliminary level of +0.4% m/m.
Members of Japanese Cabinet noted analyzing statistics that although the rise in machine-building sector has been observed, the sector is weak in general and it is too early to speak about stabilization.
Note that representatives of the Japanese Concern Canon stressed today that current actual price levels of Japanese Yen are not justified. The company expects that the rate of the JPY will reduce to the level of 87 by July-December 2011.
Worth noting that representative of the Bank of Japan Mr. Kamezaki stressed earlier that economy in the Country of the Rising Sun will overcome the phase of deceleration by spring; nevertheless careful monitoring of the developments is still required at Forex, where sharp fluctuation of currencies remains unwanted.
Monetary politician anticipates high risk of downward movement from the USA and Europe. In Japan downside and upside risks appear balanced at the moment. Kamezaki also emphasized that Japan shall resolve its debt problems quickly, before the country losses creditability.
The data released earlier was also positive:, current account balance in Japan increased by 30.5% y/y in December, to the level of +Y1.195 trillion. Maintenance of stability in economy is the most important magnet for investors, who transfer their assets into Japanese currency. As it became known this morning level of corporate bankruptcies in Japan reduced by 5.52% m/m in January, to the level of 1041. Reduction of bankruptcies and growth of the balance of payment surplus of the country are the indications of the national currency consolidation.
