JPY: Japanese Yen started new week with significant fall again

The Japanese Yen rate continues to weaken at the trading session of the Forex currency market on Monday. It is possible that the Bank of Japan will use force against the currency as country’s economy needs the weak Yen next year to eliminate pressure on exporters and on economic recovery.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY; however it is moving along the signal line, not giving a clear signal. Stochastic oscillator is giving a pair buy signal today, being in the neutral zone.

Forex recommendations: taking into account that bullish sentiments intensify, buyers’ targets will be the levels of 84.75 and 85.00.
Last Friday the Bank of Japan stated that they intend to continue implementing the program of financial stability further on and they also emphasized that the world financial system is not stable either.

Consumer confidence in the Land of the Rising Sun continues to decline for the fifth consecutive month. Is seems that people are still guided by the fears of the economic instability in the country which can affect labour market and salary levels.

People belief that the time is not ripe for purchasing large goods also decelerates recovery of confidence.
Long-awaited data on the Japanese level of GDP in QIII was published earlier; real GDP was revised to +1.1 q/q (+4.5% y/y) against preliminary estimate of +0.9%.  It is interesting that according to the Japanese Cabinet, the rise in index was promoted by the growth in private sector consumption, which usually accounts to about 60% of GDP. Special demand was observed in the energy-efficient cars for the reason that period of subsidy provided for them will expire soon.

However, economists do not console themselves with illusions that results of the fourth quarter will be as inspiring. On the contrary, all predictions are now reduced to the fact that the data in the current quarter will be weak, since the economy continues to decline.

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