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At the Forex currency market the Japanese Yen rate retreats on Friday under pressure from USD.

Forex forecast: MACD indicator for the pair USD/JPY moves sideways in the negative area; volumes are above average and doesnot give a clear signal. Stochastic Oscillator is going up in the neutral zone,giving a weak sell signal.

Forex recommendations: in case of breakdown at the level of 77.20, the pair will go to 77.40 and 77.50. A chanceis high that the pair will consolidate at the current levels.

Publication Nikkei, said at theend of the week that budget deficit in Japan will be above 17 trillion yen in 2015, which is 3.5% of GDP of the country even if government raise tax onconsumption. Officially Japan plans to reduce budget deficit to 3.2% of GDP in2015 in order to reduce the index twice versus to 2010.

Next Tuesday, on 24 January Japanese authorities are ready to issue new updated forecast.

Japanese statistics demonstrates deceleration in economy: revised average wages in the country fell by 0.2% y/yin November against preliminary decline of 0.1%. The index was stable inOctober, so it is the first decline in two months.

Statistics released earlier showed that trade balance in Japan was at the level of -Y496.5 billion inDecember. In addition, bank lending increased by 0.5% y/y in December againstthe growth of 0.2% y/y in November.

The head of the Bank of Japan Mr.Shirakawa said earlier this week that economic recovery in the Country of the Rising Sunhas suspended and situation in Europe represents the most dangerous risk forthe economy. Local companies have no problems with credits currently; howeverthe situation can become more complicated due to external influence.

It is also worth noting, that according to the Bank of Japan, 7 out of 9 regions of the country downgraded assessments of economic situation versus the value in October. Only in tworegions assessments remained unchanged.

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