JPY: Yen moves away from local highs

At the Forex currency market the Japanese Yen rate has been moving away from local highs for the second day; investors lock in profits.

Forex forecast: MACD indicator is in positive area for the pair USD/JPY and it goes up, confirming a previous buy 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 84.00, buyers’ targets will be the levels of   84.30 and 84.60.

The following Japanese news was released today:
– Banking lending in November: -2.1% y/y;
– Net orders in machine-building sector in October: +7.0% y/y against +4.2%  y/y in September;
– Monetary base ?2 in November +2.6% y/y against revised value of +2.8% y/y in October;
– Balance of current account in October: +2.9% y/y to +Y1.436 trillion;
–Number of bankruptcy in November: -6.3% y/y against -9.9%  y/y in October;
– Index of economic observers (current conditions) in November: 43.6 against 40.2 in October.

Note that banking lending has been sliding down for 12th consecutive months, which is another indication that domestic economy makes almost no headway.

Japanese GDP data for QIII will be released on 9 December; preliminary data demonstrates growth by 3.9% y/y at the moment. 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.

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

[More]