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The Japanese Yen rate resumed downside movement at the Forex currency market on Friday after the news of a new earthquake in Japan.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY and is rising, confirming a former buy signal. Stochastic Oscillator stays in the overbought zone today, fiving a pair buy signal.

Forex recommendations: in case of a breakup at the level of 85.30 buyers’ targets will be 85.50 and 85.70.
A set of important statistics was released in Japan today:
– trade balance increased by 10.5% y/y in March;
– import levels increased 3.3% y/y, export grew 4.1% y/y;
– current account balance increased by 3.0% y/y in February against the decrease by 47.6% in January;
– unemployment rate totaled to 4.6% in February, not reviewed. In January the rate totaled to 4.9%.

The news turned out to be extremely positive, but it didn’t give support to the Japanese currency after the news of a new earthquake in Japan.
According to BOJ decision released after the meeting the day before, the key interest rate was left unchanged at the historical low of 0.0-1% per annum. The regulator stated, that national economy remains under strong downside pressure expected in the meantime. Later a moderate recovery will take place.

As noted by the officials, financial markets are in whole stable whereas a number of regions experiences production cuts and small business weakness.

Besides BOJ announced a new plan of extra financing amounting to Y1 trln.

All central bank’s movements now aim at stabilization lending for companies to be able to use cheap money in the wake of magnitude-9 earthquake. Part of the above mentioned measures was taken by BOJ after the quake of 1995, but in smaller volume terms.

According to observers, monetary policy tightening should not be expected until mid-2012, and stimulus programs will not be cut down for the nearest 6 months at least.

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