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The Japanese Yen rate moves away from local highs at the Forex currency market on Monday due to the domestic economic news in the Country of the Rising Sun.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY and goes down, however trading volume is not high which shows that sell signal is fading. Stochastic Oscillator remains in the oversold zone, maintaining a pair sell signal.

Forex recommendations: if the level of 82.40 is exceeded the pair will go to 82.55 and 82.70. If upward breakdown does not take place the pair will consolidate close to the existing levels.

As it became known this morning, the head of the Bank of Japan Mr. Shirakawa said that following quarters I and II  it can be expected that level of GDP will reduce, due to the serious aftermath of the earthquake in March. He thinks that the main problem is the shutdown of the production facilities, which in any way or other is connected with the power failure.

Shirakawa believes that as soon as the power supply will reach the level of 11 March, production capacity will be restored.
At the same time Central Bank is still ready to take measures to support economy, if required.

It became known earlier that Japanese government decided not to issue new government bonds aimed at financing supplementary budget which is designated for recovery process after the earthquake and tsunami in March. In addition, last Friday, government of the Country of the Rising Sun approved the budget in the amount of 4.015 trillion yen designated for the North-East regions of the country which suffered the most losses during the earthquake.

It is also worth noting that Japan considers the possibility of raising taxes to 15% of the sales tax from the current 10%.
It became known earlier that surplus of trade balance amounted to Y196.5 billion in March against the level of Y931.94 billion a year earlier and tertiary index rose by 0.8% m/m in February against the fall by 0.1% in January - Japanese economy had really expanded but it was before the earthquake in March.

Meanwhile, the level of export decreased by 2.2% y/y in March, while level of import increased by 11.9% y/y which is logical.

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