JPY: The rate of Yen is being corrected from the highs of November

At the Forex currency market the Japanese Yen rate regains from the previous fall amid instability at the capital markets.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY and it goes up, giving a pair buy signal. Stochastic oscillator also gives the same signal, being in the neutral zone.

Forex recommendations: if bullish sentiments intensifies and in case of breakdown at the level of 83.80 the pair will go to 84.10 and 84.50.
It is a day off in Japan today therefore there is no economic news in the country.

Note that the Yen has responded to the investors’ withdrawal from risks for the first time over a long period; slight recovery today should be regarded as correction, however in case of consolidation of this result we will be able to speak about possibility of the trend reversal. 

The Bank of Japan maintained interest rate in the target range of 0-0.1% per annum; at the last meeting the Bank of Japan  announced the purchase of the mortgage investment trusts with the rating not lower than AA. As was noted earlier in accordance with the Bank of Japan expectations, domestic economy will revert to the moderate growth path in 2011; while average forecast of basic inflation amounts to 0.4% so far. Average forecast of the real level of GDP for the next fiscal year is at the level of +2.1% against the forecast of 2.6% in June. The head of the Bank Mr. Chirakawa noted that they will carry out monetary policy easing more actively than it was before, as the economy follows the way of development.

Japanese Finance Minister Mr. Noda stressed yesterday that authorities intend to take decisive measures when required and if the Yen starts to grow rapidly. He also noted that the Bank of Japan shall provide full support to the country’s economy.

Noda also expressed hope that consumer prices in Japan will begin to grow in the new fiscal year which starts in April 2012.

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