JPY: Japanese Yen rate is being corrected slightly at the end of the week

The Japanese Yen rate is being corrected slightly at the Forex currency market on Friday however it is too early to speak about reversal trend.
 

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY, however it goes down, giving grounds for a pair sell signal. Stochastic
Oscillator is giving a similar signal, being in the neutral zone.

Forex recommendations: correction for the pair may continue today; traders' targets at the end of the week will become the levels of 82.20 and 82.50.
No wonder that official Tokyo has been silent lately - the Yen has retreated significantly from its highs, which made it possible for the country's
government to draw attention to the other burning issues.

Statistics was not frequently published this week. It became known this morning that manufacturing activity index in Japan reduced by 0.8% m/m in
September, which once again indicates slowdown in the economic recovery. The last Japanese statistics released this week was not too impressive
(index of leading indicators was revised to -0.9 points in September against the previous level of -0.6 points; index of coincident indicators was
revised tp -2.3 points m/m in September (previous level: -1.3). In addition activity index in the Japanese service sector reduced by 0.9% m/m in September against the previous level of -0.2% m/m.

However the fall of the Yan this week at Forex gave local authorities a chance to focus their attention on the daunting problems in economy- in particular, on deflation. The Bank of Japan maintained interest rate in the target range of 0-0.1% per annum; at the last meeting the Bank of Japan  announced the purchase of the mortgage investment trusts with the rating not lower than AA. It was noted earlier that in accordance with the Bank of Japan expectations, domestic economy will revert to the moderate growth path in 2011; while average forecast of basic inflation amounts to 0.4% so far. Average forecast of the real level of GDP for the next fiscal year is at the level of +2.1% against the forecast of 2.6% in June. The head of the Bank, Mr. Chirakawa noted that they will carry out monetary policy easing more actively than it was before, as the economy follows the way of development.

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