JPY: Yen is being corrected after the yesterday’s slump

The Japanese Yen rate resumed its growth at the Forex currency market on Thursday – investors’ interest in the USD is low due to the decline in the U.S. government bonds yield and traders have turned to the purchase alternatives.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY, however it started to go down which gives ground for a pair sell signal. Stochastic Oscillator is giving a similar signal today, being in the neutral zone.

Forex recommendations: in the current external background is maintained and the level of 83.60 is exceeded, traders; targets will become the levels of 83.40 and 83.00.  The long-awaited data on the Japanese GDP level in QIII was released today. Real GDP was revised to +1.1% q/q (+4.5% y/y) against preliminary estimate of +0.9%.

It is interesting that, according to the Japanese Cabinet, rise in index was promoted by the growth in private sector consumption, which is usually about 60% of GDP. Special demand was noted in the energy-efficient cars for the reason that period of subsidy provided for them will expire soon.
However, economists do not console themselves with illusions that results of the fourth quarter will be as inspiring. On the contrary, all predictions are now reduced to the fact that the data in the current quarter will be weak, since the economy continues to decline.

As it became known on Tuesday, index of coincident indicators in Japan declined to 100.7 in October against expectations of 100.8. The data today demonstrated the second consecutive reduction of the indicator. The index of leading indicators fell for the fourth time in a row, to the level of 97.2.
Japanese Finance Minister Mr. Noda noted on Tuesday that the Yen could continue to grow, however he did not touch a topic of a possible intervention into the currency trading course. However to all appearance, Central Bank of Japan is not too much concerned about recent consolidation of JPY. Noda stressed however, that the regulator would continue to monitor trading process.

Note that this was the first comment, made by the monetary authorities about the rate of the Yen over the last month.

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