JPY: Japanese Yen reverted to decline
At the Forex currency market the Japanese Yen rate started to decline again.
Forex forecast: MACD indicator is in the negative area for the pair USD/JPY, continuing to go up and giving a pair buy signal. Stochastic oscillator remains in the overbought zone, moving in parallel to the time axis and confirming a pair buy signal.
Forex recommendations: in case of breakdown at the local highs, buyers’ targets will be the levels of 84.00 and 84.30.
As it became known on Tuesday, at the last meeting the Bank of Japan decided to keep interest rate unchanged, in the range of 0-0.1% as expected. Nevertheless the regulator reported that he increased economic assessment, which became the first such factor over 9 months.
According to the regulator Japanese economy is overcoming a recession stage amid increased rates of exports and other constituents. The head of the Bank Mr. Shirakawa said today that GDP in the country can show acceleration in the current quarter due to the increased demand from abroad.
Macro-economic data released yesterday showed that actual GDP reduced by 0.3% q/q, in QIV, 2010,1.1% y/y (forecast -2.0% y/y); index of capital expenditures rose by 0.9% q/q in QIV against +1.5% in QIII. Thus, the most important publication early this week - Japanese GDP appeared to be better than expected, although this effect can be temporary since the economy of the country is still in a complicated situation.
Economists, however do not exclude that recovery of Japanese economy in coming quarters can be more dynamic, based on the stable exports levels. Note that net level of export reduced by 0.7% last quarter against the forecast of decline by 1.6.
Finance Minister of Japan Mr Yosono noted this morning that economy in the Country of the Rising Sun would recover, however monetary authorities shall continue to monitor all possible risks carefully. In addition, Japan is planning to enter into close relations with China where economic growth has never come across problems.
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