Yen Dollar Daily Candle Chart - 31st March 2009
Even as the markets awaits possibly the most important item of fundamental news on the economic calendar relating to the Japanese economy, Japan’s Q1 Tankan large manufacturers business conditions survey, to be released Apr 1, is forecast to tumble to -55 from -24 in Q4 of last year. A decline to such a level would be the lowest since Q2 of 1975 and represents the biggest quarterly fall since the index was first introduced in 1974. The global economic slowdown is biting hard into Japan’s export led economy and the decline in exports has set new records every month since late 2008. The latest -49.4% year on year plunge in Japan’s exports for the month of February does not bode well for Japanese growth this quarter after Japan’s GDP contracted at a -12.1% annualized pace in Q4 of last year.
From a technical perspective we are continuing to a sideways consolidation with yet another failed attempt this morning to break out above the $99 region which is now providing stubborn resistance to any move higher, and with the Tankan survey being reserved tonight coupled with the Japanese year end my advice remains the same which is to stay out of this pair until after these events. In the meantime you can keep up to date with all the latest live currency charts, latest currency news and fundamental news by simply following the relevant links. If you are looking for an ECN broker or fx broker, then just click on the relevant link for more details.
