JPY: Yen started to retreat from three weeks highs

At the Forex currency market the Japanese Yen rate is traded downward on Tuesday, retreating from three weeks highs. Although the pair USD/JPY declined during Asian session, technical rebound was not long to wait.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY; however it is moving along signal line, not giving a clear signal. Stochastic oscillator is giving an antipodal signal today.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 82.80 the pair will go to 83.40 and 83.80. If the level of 82.50 is exceeded, traders’ targets will be the levels of 82.10 and 81.70.

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.

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.

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

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