JPY: the government plans to weaken the national currency

At the Forex currency market the Japanese Yen rate weakens a bit on Tuesday amid stable external background. Besides the government plans to weaken the Japanese currency in the long term influence JPY.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY, and is going down, giving a sell signal. Stochastic Oscillator resumes growth in the neutral zone giving a buy signal.

Forex recommendations: out of market.

Possible Forex scenarios: in case of breakup at the level of 76.40, the pair will go to 76.60 and 76.90. If breakup does not take place, the pair will consolidate at the current levels.

As it became known today, Japanese politicians will take a set of measures to weaken the national currency in the long term. Presumably, the measures will include using JPY in M&A and in securing electric payments. Still the amount of money to be spent is unknown.

It’s interesting to note that Japan doesn’t rule out taking part in Greece aid – in case the Athens provide an adequate plan.

It became known earlier that revised industrial output in July rose by 0.4% m/m against preliminary value of +0.6% m/m, which is logical since the decline that is being observed in all sections was caused by the slowdown of the world economy.

Statistics released earlier showed that real revised GDP in Japan fell by 0.5% q/q (-2.1% y/y) in Q2 against the forecast of -0.5% q/q (-2.0% y/y) and previous level of -0.3% q/q. Statistics released yesterday showed that bank lending fell by 0.5% in August against the decline of 0.6% in July. In addition, index of economical observers who monitor current situation fell to 47.3 points in August against the level of 52.6 points in July.