JPY: Japanese Yen continues to retreat despite the fact that the USD/JPY is overbought

The Japanese Yen rate continues to decline at the Forex currency market today; Yen is approaching to the lows of October, which we witnessed only
due to the currency intervention, conducted by the Bank of Japan. However, the demand for JPY is going down now as players are convinced that Asian economy develops steadily and buying reserve currency makes no sense. It is possible that this trend is temporary.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY, however it is moving along the signal line, not giving a clear signal. Stochastic Oscillator has not identified a signal today either.

Forex recommendations: off the market.

Feasible event scenarios at Forex: in case of breakdown at the level of 83.60 the pair will go to 84.00 and 84.40. If the level of 83.25 is exceeded, traders' targets will become the levels of 82.20 and 82.50. The following Japanese data was released today:
 - Index of coincident indicators revised to -1.2 points m/m in September (previous level was -1.3%);
- Index of leading indicators in September revised to -0.9 points against the previous level of -0.6 points;
- Index of lagging indicators in September revised to +0.9 points against the previous level of +1.0 points.

It became known earlier that activity index in the Japanese service sector reduced by 0.9% m/m in September against the previous level of -0.2% m/m.
Japanese Minister of Economy Mr. Qaeda noted earlier this week that Japanese economy will remain weak for some time; therefore risks should be carefully monitored. At the same time according to the politician, the rise in GDP could have been more rapid in QIII if only the rate of the Yen were not so high as to put pressure on the exports and imports levels.

The Bank of Japan maintained interest rate in the target range of 0-0.1% per annum; at the last meeting the Bank of Japan  announced the purchase of the mortgage investment trusts with the rating not lower than AA.

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