JPY: The pair USD/JPY is being corrected, however signals are mixed

The Japanese Yen rate is going down at the Forex currency market on Monday after the growth at the end of last week the pair is regaining losses partly.

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 sell signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 83.00 the pair will go to 83.40 and 83.80. If the level of 82.50 is exceeded, traders’ targets will become the levels of 82.10 and 81.60.

It would be interesting to notice how actively the Yen responded to the investors’ interest to risk, turning the situation in its favour and managing to regain some of its losses. In general the JPY has a potential to grow, however the growth seems to be insignificant.

Board member of the Bank of Japan Mr. Suda noted earlier that recession in the country’s economy can be prolonged because the growth in the Yen in the past has significant impact on the export levels. According to him consumer sentiments also goes down as well as corporate sentiments. Suda also believes that financial market remains volatile due to the large number of risks in the world. At the same time the Bank of Japan just need to be vigilant and monitor the situation in the economies of Eurozone and the USA.

Among other things monetary politician did not rule out that program of assets redemption can be expanded if required. It became known on Thursday that capital expenditures of non-financial companies in QIII amounted to  5.0% y/y against -1.7% in QII. Worth noting that expenditures have increased for the first time over the last three years and a catalyst of this was external demand which was not destroyed even by the strong Yen. According to economists the indicator should have risen by 6% and current growth is too slow to support economy. The Japanese GDP data for QIII will be released on 9 December; preliminary data demonstrates growth by 3.9% y/y now. 
 

 

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