JPY: the Japanese Yen has again become attractive at the beginning of the week

At the Forex currency market the Japanese Yen rate remains high on Monday – demand for safe-heaven currency is increasing, and in spite of the Fridays’ correction the JPY is rising amid turbulent external background.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY, and is going down, giving a sell signal. Stochastic Oscillator is traded downward to the neutral zone aiming to enter the oversold zone again.

Forex recommendations: in case of breakdown at the level of 76.10, the pair will go to 75.90 and 75.70. If breakdown does not take place, the pair will consolidate at the current levels.

Recent attempt of the “Bulls” to recoup was not successful because external background deteriorated again; therefore the demand in the Yen went up.

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. 

As long as investors continue to flee from risks, the pair USD/JPY will remain under pressure.

It should be noted that the Bank of Japan shows no signs of interest to what is happening on the currency market. This can be explained by either it feels comfort within the latest alignment of forces, or the Bank of Japan prepares new measures to fight down the expensive JPY.