JPY: strengthening the Japanese yen continues, the local maxima updated

At the Forex currency market The Japanese Yen rate continues to grow in advance of the New year on Friday amid thin market and optimism of those few investors who stay in the trading floors today. Following the publication of the favourable statistics on the U.S. employment rate, traders believed that recovery in the U.S economy will encourage the recovery of the world economy.

Forex forecast: MACD indicator for the USD/JPY has merged with its signal line and is not giving a clear signal. Stochastic Oscillator is still in the oversold zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 81.30 the pair will go to 81.10 and 80.90. It breakdown will not take place the pair will continue to consolidate close to the current levels.

Japanese markets are closed today.

Unemployment in the country in November (5.1% against 5.1% in October; change in employment rate in November: 80 thousand y/y) has remained in the previous level as expected.

Worth noting fact is that although deflation started it retreat its effect is still quite strong. The levels of industrial output showed positive rise for the first time over a few months which can became an indication of the recovery in the sector, which will lead to the recovery of the entire Japanese economy.

At the meeting which was held this week, the Bank of Japan announced the 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.