JPY: Japanese Yen stands still today

At the Forex currency market the Japanese Yen rate makes no progress on Friday in absence of the most traders – the world is celebrating Catholic Christmas today. Only few wish to risk in a thin market.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY and it slides down as smoothly as before, confirming a previous sell signal for the pair. Stochastic Oscillator still remains in the oversold zone and is not giving a clear signal.

Forex recommendations: if bearish trend intensifies, the pair’s traders will have the levels of 82.75 and 82.50 as a target. Otherwise, the pair will continue to consolidate close to the current levels.

There was no publication of any important macro-economic news on Japan today.

At the meeting which was held this week, the Bank of Japan announced decision to leave interest rate unchanged in the target range of 0-0.1% per annum. The vote was unanimous. In the follow-up comments the regulator emphasized that assessment of economic situation remained unchanged and economic growth will be slow and small for some time. Nevertheless, Japanese economy continues to demonstrate signs of moderate recovery. In addition, the Bank of Japan lowered its forecasts for industrial output and drew attention to the need to keep track of the downward risks to the national economy.

Meanwhile, statistics of this week showed that Japanese economy has learnt to develop even in the conditions of the expensive national currency. Thus, export volume in Japan increased by 9.1% y/y and 7.8% m/m in November, which indicates the rise in demand for products from both Europe and China. The demand was able to neutralize the negative impact caused by Japanese Yen growth, which used to put considerable pressure on macro-economic indicators.  

Market believes that total exports will decline in QIV; however in the early months of 2011 it is projected to recover.
 

[More]