2010-04-08 15:11:00
At the Forex currency market Japanese Yen on Thursday can be attractive for purchase amid the USD correction.
Forex forecast: MACD indicator for the pair USD/JPY is in the negative area today, below the signal line and is still declining, giving a buy signal for the pair. Oscillator stochastics is in the oversold zone and gives the similar signal.
Forex recommendations: as there is probability that correction movement will continue for the pair it is worth to wait for the level breakdown at 93.10, then the way will be free to 92.15.
Japanesedatareleasedtoday:
- Ferbuary, pure production orders in machine-building industry section -5,4% m/m against -3,7% вin January
– February, current operations balance surplus Y1.47 billion against Y1.14 billion last year
– March, bankruptcy number reduced by 14,5% y/y against -17,3% earlier
– March, economic observation index – current estimation 47,4 against 44,7 anticipated and 42,1 earlier
– March, economic observation index - forecast 47,0 against 46,7 anticipated, 44,8 earlier
– March, production orders in machine-tools industry section +262,1% against +217,4% in February
As it was expected at the meeting on 7 April the Bank of Japanese took a decision not to change interest rate current level which is at the level 0,1%. The Bank pointed out in the covering comments that the Japanese economy is gathering pace, but the economy growth will be moderate for some time as there are still some downside risks. Moreover sentiments are improving in the business circles. It was also stressed out that financial conditions in the country demonstrate all signs of the accelerating mitigation while the deflation curb still remains number one priority.
According to the earlier published indexes basic consumption prices in Japan decreased by 1,2% exclusive of fresh food products in February compared to the same period last year. Therefore deflation has been in the country for a year and this is the major risk for the Japanese economy recovery
The minutes of the Japanese Bank last meeting were released last week. According to the minutes the downside risks are still preserved in the national economy; the prices in February were lower than it had been expected in January. Some bank members also paid attention that the price reduction in the Land of the Rising Sun is going on at the large scale pace.
The minutes also reflect the decision taken in favour of the 20 billion yen ($222 milliard) credit program which will help encourage economic growth and fight inflation. According to the experts the Bank’s last decision was taken under some political pressure and although the measures impact on the economy will be the modest, the Bank will avoid any accusations of inactivity in the watering down of the monetary policy.
Japan is preparing for the Parliament elections; Prime-Minister Khotoyama’s Cabinet rating has dropped by 33%, which is the lowest index since the Cabinet formation in Autumn 2009. Furthermore unfavourable rating has demonstrated its growth by 53,3%. According to Kyodo News, 21,1% of respondents intend to support opposition liberal party.