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At the Forex currency market the Japanese Yen rate is still being corrected on Friday. Moreover, sharp movement has been observed in the pair USD/JPY again, which can indicate involvement of the regulator in the trades.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY, and goes up, giving a buy signal; however, volumes are decreasing. Stochastic Oscillator is in the oversold zone and maintains a sell signal; however it tends to go upward which gives grounds to a buy signal.

Forex recommendations: in case of breakdown at the level of 77.00, the pair will go to 77.10 and 77.35. If upward breakdown does not take place, the pair will consolidate at the current levels. Current correction in the pair will slightly reduce risks of a new round of currency intervention from the Bank of Japan. Thus, looking at the latest dynamics of the pair a thought that regulator is involved in trades does not seem too weird.

Economic situation has not changed dramatically in Japan this morning.

Statistics released earlier showed that real revised GDP in Japan fell by 0.5% q/q (-2.1% y/y) in Q2 against the forecast of -0.5% q/q (-2.0% y/y) and previous level of -0.3% q/q. Statistics released yesterday showed that bank lending fell by 0.5% in August against the decline of 0.6% in July. In addition, index of economical observers who monitor current situation fell to 47.3 points in August against the level of 52.6 points in July.

As it became known the day before yesterday, revised industrial production in July increased by 0.4% m/m versus preliminary level of +0.6% m/m; which is quite natural because slump, which is evident in the economy, was caused by slowdown in the global economy. According to the previous estimates of the Bank of Japan, real level of GDP will rise by 0.4% in the fiscal year of 2011 (forecast of April had been more optimistic: +0.6%). In the fiscal year of 2012, GDP growth is expected in the volume of 2.9% which would agree with the April forecast. Next year CPI is predicted to be at the level of +0.7%. Real GDP in Japan decreased by 0.2% on quarterly basis (-1.3% y/y) in Q2. GDP fell less than expected, and Minister of Finance of the Country of the Rising Sun said that next quarter Japan will demonstrate the rise of economy.

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