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At the Forex currency market the Japanese Yen rate is traded slightly downward on Tuesday, remaining uncertain about further trend.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 77.10, the pair will go to 77.30 and 77.40. A chance that the pair will consolidate at the current levels is high.

A two-day meeting of the Bank of Japan ended today; interest rate was left at the level of 0.1%, as expected. At the same time, the regulator issued updated economic forecast for the country and market had to face anticipated, but nevertheless, very unpleasant moments.

The Bank adheres to estimates that GDP growth will be by 2% in 2012, despite development of European crisis. (In April, estimated level was at 2.2%). According to the regulator, economic activity is flat, largely due to external influence and expensive Yen. Economic outlook is rather vague: the situation will remain unchanged for some time and then it will shift to moderate growth.

As a matter of fact, the Bank of Japan still intends to ride out aggravations of crisis in Europe, and after that will try to raise its economy.

Edition of Nikkei noted last Friday 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 raises tax on consumption. Officially Japan plans to reduce budget deficit to 3.2% of GDP in 2015 in order to reduce the index twice versus to 2010. Japanese statistics demonstrates deceleration in economy: revised average wages in the country fell by 0.2% y/y in November against preliminary decline of 0.1%. The index was stable in October, so it is the first decline in two months. In addition, bank lending rose by 0.5% y/y in December against the growth of 0.2% y/y in November.

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