JPY: Japanese Yen made upward correction possible for USD

The Japanese Yen rate goes down at the Forex currency market on Thursday after six sessions of steady growth.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and is moving along signal line not forming a clear signal. Stochastic Oscillator continues to give 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 82.30 the pair will go to 82.50 and 82.90. If the level of 81.70 is broken down,traders’ targets will be the levels of 81.30 and 80.95.

The following Japanese data was released today:
– Index of leading indicators in November: +2.9 points;
– Index of coincident indicators in November: +1.7 points.

In general the situation in Japanese economy remains unchanged, except for the frequent talk in the market that Japan can cede to China its status of the world’s second largest economy; according to preliminary estimates, China overtook Japan in the levels of nominal GDP in 2010.   

Japanese statistics was favourable so far. 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 increased by 0.6% m/m in November which agreed with the forecast. It became the sixth consecutive factor of growth, which is a positive indicator.

Minister of Economy Mr. Yosano expressed hope yesterday 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.

 

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