JPY: Japanese Yen goes down very reluctantly in pairing with USD

At the Forex currency market the Japanese Yen rate goes down on Monday, following technical correction of the whole market. Meanwhile, today, a two-day meeting of the Bank of Japan started and it will be interesting to listen to the comments of the monetary authorities of Japan on Tuesday.  

 Forex forecast: MACD indicator is in the negative area for the pair USD/JPY, however it continues to move along the signal line, not giving a signal. Stochastic oscillator is giving a pair buy signal, being in the neutral zone.

Forex recommendations: if bullish sentiment for the pair will be maintained and in case of a breakdown at the level of 83.00 buyers’ targets today will become the levels of 83.50 and 84.00.

So, tomorrow, the bank of Japan will comment on the current state of the economy in the country, where deflation still continues and in general the situation remains quite alarming. Japanese authorities noted earlier, that Japanese economy is growing, although the pace of growth is slow. In addition, the government increased the overall assessment of the economy for the first time in the last 7 months; outlook of the levels of industrial output have also been upgraded. 

It is worth waiting for the opinion of the Bank of Japan, which is usually distinguished by a sensible view on the problem.

Japanese Minister of Economy Mr. Yosano expressed hope last week that the JPY will be traded at the adequate levels. In addition, the head of the Bank of Japan Shirakawa and Prime Minister Khan exchanged views on the current situation in the Japanese economy and the world; Shirakawa drew attention again to the priorities of monetary policy in Japan.

Japanese statistics, released last week was favorable. Thus, revised volume of industrial output in Japan increased by 1% m/m in November, which became the first factor of growth over half a year; at the same time capacity utilization rose by 1.6% m/m in November against the previous fall by 2.3% and the ratio of stocks and supplies was revised to -8.3% m/m in November against the growth by 8.4% m/m in October.

In addition, tertiary index, demonstrating the state of affairs in the Japanese service sector and expenditures increased by 0.6% m/m in November, which agreed with the forecast. It has become the sixth consecutive fact of the index growth, which is a positive indicator. 

 

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