The Japanese yen looks stable

16.01.2015
The USD/JPY pair looks for and finding reasons for the decline - the instrument remains in the middle of the well traded side channel and it can be considered a victory for the yen.

By the end of another January week the Japanese yen is trading slightly downward, but fundamentally the currency now looks quite stable. It so happens that yesterday's decision by the Swiss National Bank to abandon pegging the franc to the euro at 1.20 has played in favour of the JPY in the Forex market.

The Economic Minister of Japan, Mr. Amari spoke about this today. According to him, the events of recent days - namely, the talk about a full-scale quantitative easing by the ECB and the SNB decision, contributed to some strengthening of the position of the yen. However, it is equally clear that all of these market reactions are temporary.

On Friday morning, published statistics showed that the index of activity in the services sector in Japan in November turned out to be at around 0.2% against the forecast of 0.3%. The indicator is quite objective because it includes parameters of observations of segments of electronics, communications, trade, economic and financial recovery and the social sector in full. These are largely due to the export parameters, which in turn can influence the movement of the yen.

On the whole, the situation in the USD/JPY pair now looks quite neutral. The presumptive range of trades in the instrument for the next week is 115.4-119.2. The pair is standing exactly in the middle of the trading channel.
 
RoboForex Analytical Department

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.