JPY: Japanese Yen is traded with no clear direction
At the Forex currency market the Japanese Yen rate is traded upward on Thursday, however sideways trend of trading has been preserved over the last four days which was in the narrow range.
Forex forecast: MACD indicator is in the positive area for the pair USD/JPY, however it is moving along the signal line, not giving a clear signal. Stochastic Oscillator is giving a pair sell signal, being in the neutral zone.
Forex recommendations: off the market.
Feasible event scenario at Forex: in case of breakdown at the level of 84.40 the pair will go to 84.75 and 84.90. If the level of 84.00 is exceeded, traders’ targets will be the levels of 83.60 and 83.20.
The following Japanese data was released today:
– Capital expenditures of non-financial companies in QIII amounted to +5.0% y/y against -1.7% in QII.
Worth noting that expenses have increased for the first time over the last three years and a catalyst of this was external demand which was not destroyed even by the strong Yen. According to economists the indicator should have risen by 6% and current growth is too slow to support economy.
Japanese GDP data for QIII will be made public on 9 December; preliminary data demonstrates growth by 3.9% y/y.
Board member of the Bank of Japan Mr. Suda noted yesterday that recession in the country’s economy can be prolonged because the growth in the Yen in the past has significant impact on the export levels. According to him consumer sentiments also goes down as well as corporate sentiments. Suda also believes that financial market remains volatile due to the large number of risks in the world. At the same time the Bank of Japan just need to be vigilant and monitor the situation in the economies of Eurozone and the USA.
Among other things monetary politician did not rule out that program of assets redemption can be expanded if required.
