The Japanese yen continued its decline against the dollar and the euro for the second day today as the unpleasant economic conditions in Japan make their currency less attractive to the buyers.
The technical reasons are also pressing on the yen as the Japanese currency was growing strong during last weeks. While the other major economies show improved macroeconomic conditions (like U.S. and Australia), the indicators coming out of Japan aren’t very optimistic and suggest a further decline. The silent interventions by the Bank of Japan may also be taking an effect in yen’s current depreciation.
Consumer confidence survey showed a monthly decline from 40.8 to 39.9 in Japan today. Machinery orders also fell by 4.5% in October. These reports were released on the background of the negative revisions of the Q3 GDP gain. Meanwhile, investors expect the positive fundamental releases from the U.S. consumer and export/import sectors today.
Many analysts believe that the current growth is the rally spurred by the decrease of the
USD/JPY went up from 88.30 to 88.89 today after rising from 87.98 yesterday. EUR/JPY rose from 130.07 to 131.06 today, while AUD/JPY rate increased from 80.94 to 81.40.
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