JPY: Japanese Yen is being corrected after yesterday’s downfall

At the Forex currency market the Japanese Yen rate is being corrected on Thursday after severe downfall yesterday.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and is still descending, confirming a previous sell signal for the pair. Stochastic Oscillator remains in the overbought zone, not forming a clear signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 83.30 the pair will go to 83.90 and 84.10. If the level of 82.95 is exceeded, traders’ targets will be the levels of 82.70 and 82.50.

Representatives of the Monetary Policy Committee of the Bank of Japan stated today that situation in the national economy is fully consistent with the expectations that were reflected in the October release; however, regulator’s attention is still focused on the risks to the economy, as the downward risks can hamper transition from deflation to inflation in the country.

In other respects the situation in the Japanese economy remains unchanged.

At the meeting which was held at the end of December, the Bank of Japan announced the 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.

The next meeting of the Bank of Japan is scheduled for 26 January. Subsequent meetings of the Regulator will be held on 18 February, 16 March, 8 April, 23 May, 15 June, 16 August, 15 September, 14 October, 14 November, 13 December.

Note, that on 13 January meeting of the (DPJ) Democratic Party of Japan will be held, which can also affect pair USD/JPY on short term.
Further developments for the pair USD/JPY will largely depend on the U.S. statistics, in particular employment rate excluding agricultural sector in the USA, if data is positive, the USD will continue to strengthen.

 

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