JPY: Japanese Yen demonstrates inclination to grow

The Japanese Yen rate continues to consolidate at the Forex currency market on Tuesday.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY and it is moving along the signal line, preventing from forming a signal. Stochastic oscillator is giving a pair sell signal, being in the neutral zone.

Forex recommendations: if bearish sentiments intensify for the pair and in case of breakdown at the level of 83.60 traders’ targets will be the levels of 83.10 and 82.70.

The Bank of Japanannounced its decision today to leave interest rate unchanged in the range of 0-0.1% per annum. The vote was unanimous.
 

In addition the Bank of Japan lowered its forecast for the production volume and drew attention to the need to keep track of the downside risks to the national economy.

The Yen hardly responded to the Bank of Japan decision, as it was quite predictable.
Tankan report released last week also deserves consideration: it showed decline for the first time in 7 quarters – up to the level of 5 against the previous level of 8 and the forecast of 3. Quarterly report of the Bank of Japan which shows sentiments in the business circles of the country once again confirmed the fact that Japanese indicators of QIV will be weak, which will indicate downturn in economy. Market believes that Tankan indicator will go down to -2 by March 2011 which will mean that pessimists dominate over optimists in the business-class of Japan.
 

 

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