JPY: Japanese Yen sells well again

The rate of Japanese Yen goes up again in the mid-week, despite the fact that traders’ interest in safe assets is getting lower. An improved forecast of Nomura for Japanese economy has inspired traders.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and is ready to cross signal line from bottom upward, maintaining a pair buy signal. Stochastic Oscillator tends to come out of the overbought zone today and is going to create a sell signal.

Forex recommendations: considering market sentiments we can assume that downward movement for the pair will intensify and in case of breakdown at the level of 83.50 the pair will go to 83.10 and 82.70.

Thus, experts of the Bank Nomura said today that the economy of the Country of the Rising Sun is out of the wood; the worst stage has been struggled through and the process of economic recovery will accelerate. It agrees with the assessment of the Bank of Japan which emphasized that Japanese economy is strong enough now to cope with consequences of temporary recession.

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 earlier 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. 

 

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