JPY: Yen continues to follow the way of recovery

The Japanese Yen rate continues to consolidate at the Forex currency market on Friday

Forex news: MACD indicator is in the negative area for the pair USD/JPY and it continues to go down which makes it possible to form sell signal for the pair. Stochastic Oscillator is giving a similar signal being in the neutral zone.

Forex recommendations: in case of breakdown at the level of 83.40 traders’ targets will be the levels of 83.10 and 82.70.

Japanese GDP data for QIII will be released on 9 December; preliminary data demonstrates the growth by 3.9% y/y. 
Board member of the Bank of Japan Mr. Suda noted yesterday 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. 

 

[More]