JPY: Japanese Yen is growing again

At the Forex currency market the Japanese Yen rate is growing again on Thursday after three days of decline. As usual bad news became a catalyst for the JPY growth,

Forex forecast: MACD indicator for the pair USD/JPY is traded in the positive area and is going down, giving a sell signal; volumes are small. Oscillator has slowed down its growth in the neutral zone and is still maintaining a buy signal.

Forex recommendations: in case of breakdown at the level of 77.10, the pair will go to 77.05 and 77.00.

Rating agency S&P said today that Japanese rating is going to be revised soon, as financial situation in the country is deteriorating every day. According to the economists of the Agency it is hardly probable that Japan will be able to avoid debt problems.

The Yen responded to the news with growth.

At a two-day meeting last week, the Bank of Japan decided to keep interest rate at the previous level of 0.10% per annum. Previous volume of assets purchases was also left unchanged (20 trillion yen) as it has been revised only at the end of October.  It is not excluded that regulator will continue easing of the monetary policy if the Yen will rise in price especially knowing that after-war highs of the YPY have been tested much more than once. Japanese economy is still strongly dependant on the external demand, which is not very reliable at the moment. All these fosters Yen’s tendency to grow.

Revised volume of industrial output in Japan amounted to -3.3% m/m (-3.3% y/y) in September against preliminary level of -4.0% m/m. In addition, preliminary real GDP in Japan rose by 1.5% q/q (+6.0% y/y) in Q3 against the forecast of growth by 5.9% y/y. Earlier, Association of Economic Planning of the Cabinet of Japan arose market’s interest in new macro statistics forecasts. Thus, as per their estimates, real GDP in Japan will rise by 0.24% in the fiscal year of 2011 against the forecast in October of  +0,22%. In 2012 fiscal year GDP will increase by 2.22% (+2.30% previously). Net CPI this year will amount to -0.12% (-0.15% forecast in October), and in 2013 net inflation will be +0.18%. It became known earlier that index of coincident indicators in Japan was revised to -1.3 points in September against previous level of -1.4 points.