JPY: Japanese Yen has failed to escape from narrow range

At the Forex currency market the Japanese Yen rate continues to stay in the narrow range on Wednesday.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY and it is moving along the signal line, not forming a clear signal. Stochastic Oscillator is giving a pair buy signal on Wednesday, being in the neutral zone.

Forex recommendations: if bullish sentiments prevail for the pair, buyers’ targets will be the levels of 3.90 and 84.30. If of upward breakdown will not take place, the pair will continue to consolidate close to the current levels.

Statistics released today showed that export volume in Japan increased by 9.1% y/y and 7.8% m/m  in November, which indicates the rise in demand for products from both Europe and China. The demand was able to neutralize the negative impact caused by Japanese Yen growth, which used to put considerable pressure on macro-economic indicators.  

Market believes that total exports will decline in QIV; however in the early months of 2011 it is projected to recover.
We would remind that at the meeting yesterday the Bank of Japan announced 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.

In general, the Yen can demonstrate illogical movement in the coming days at the thin market due to Christmas holydays and falling trading volumes. 
 

 

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