JPY: Japanese Yen remains under pressure
At the Forex currency market the Japanese Yen rate continues to weaken on Monday.
Forex forecast: MACD indicator for the pair USD/JPY has slowed down its fall near the signal line and is now moving along it, not giving a clear signal. Oscillator continues to go up in the neutral zone and is maintaining a buy signal.
Forex recommendations: in case of breakdown at the level of 77.70, the pair will go to 77.75 and 77.90.
The head of the Bank of Japan Mr. Shirakawa noted this morning that the growth of the JPY continues to negatively impact on the local economy and current rise of the JPY was caused by the European crisis. He believes that if appropriate measures are not taken straight away, economy of Japan will decline sharply by 2030.
Mr. Shirakawa also noted that interventions against Yen are acceptable and effective.
The last comment is most likely very unfavourable for the JPY.
The data released earlier showed that net national CPI in Japan decreased by 0.1% y/y in October, which agreed with the forecast.
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.
Rating agency S&P said yesterday 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.
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.
