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At the Forex currency market the Japanese Yen has beentraded slightly upward at the end of last week continuing the trend ofThursday. Buyers are reluctant to come back to JPY after mass sales.
Forex forecast:MACD indicator is going up in the positive area for the pair USD/JPY andmaintains a buy signal. Stochastic Oscillator remains in the overbought zoneand maintains a previous signal.
Forex recommendations:in case of breakdown at 83.40 the pair will go to 83.60 and 84.00.
It became known earlierthat revised index of coincident indicators in Japan amounted to -0.3% m/m inJanuary, revised index of leading indicators demonstrated growth of 1.1% onmonthly basis.
Minutes of the Februarymeeting of the Bank of Japan said that some members of the Bank think that itwould be expedient to establish threshold for inflation target at the level of1-2%, while one vote was given for the target at 2%.
No changes tookplace at the meeting of the Bank of Japan in March: the Regulator left theinterest rate in the range of 0-0.1% per annum, assets repurchase program hasnot been revised either. Presently, volume of assets repurchase program amountsto 30 billion yen; it has been expanded by 10 billion yen a month earlier.Government insisted on expanding QE again; however the Bank did not take such decision.The Bank of Japan clarified that they have been dealing with expansion oflending program targeted at stimulation of economic growth to 3.5 trillion yenfrom 3 trillion yen earlier.
Statisticsreleased earlier showed that real revised GDP amounted to -0.2% q/q (-0.7% y/y)in Q4. In addition, balance of current account amounted to -Y437.3 billion againstthe forecast of +Y322.3 billion; while private consumption increased by 0.4%q/q last quarter against the forecast of 0.3% q/q.
Note that GDP hasbeen revised upward although it is still in the negative zone. Trade balance ofthe country is still in the state of deficit.
In addition, indexof economic observers in Japan reduced to 45.9 points in February against theforecast of 46 points. The head of the Bank of Japan Mr. Shirakawa notedearlier that the regulator intends to easy monetary policy until inflationreaches the target of 1%.
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