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At the Forex currency market the Japanese Yen rate is traded upward, since external background makes it possible. 

Forex forecast: MACD indicator for the pair USD/JPY continues to go down in the negative area; volumes are above average; which, all together, gives a sell signal. Stochastic Oscillator goes downslowly in the neutral zone, giving a weak sell signal.

Forex recommendations: in case of breakdown at the level of 76.50, the pair will go to 76.40 and 76.20. It is ahigh chance that the pair will consolidate at the current levels. 

Japanese statistics demonstrates deceleration of economy: revised average wages in the country fell by 0.2% y/yin November against preliminary decline of 0.1%. The index was stable in October, 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 in December. In addition, bank lending increased by 0.5% y/y in December against the growthof 0.2% y/y in November. 

Meanwhile, position of the government is more optimistic. Japanese authorities keep saying that local economy continues to grow, although suffers from sluggish exports. According tothe economic estimates released today, state of economy remains unchanged inthe Country of the Rising Sun; however export sector has been revised downward for the first time in three months: wording has been changed to:"weakening" from previous "stable", largely due to thegrowth of JPY and delays of shipments to Thailand.

The head of the Bank of Japan Mr.Shirakawa said yesterday that economic recovery in the Country of the Rising Sun hassuspended and situation in Europe represents the most dangerous risk for the economy. Local companies have no problems with credits currently; however the situation can become more complicated due to external in fluence.

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 in comparison with the state of affairs inOctober. Only in two regions assessments remained unchanged.

Minutes of the last meeting ofthe Bank of Japan released earlier, stated that it is necessary to trace backthe effect of the recent soft policy; potential impact from the expensive Yenalso causes special concern.

Mr. Shirakawa, the head of the Bank of Japan noted earlier that growth of the JPY continues to negatively impact on the local economy and that current rise of the JPY was provoked by European crisis. He believes that if appropriate measures are not taken straight away, economyof Japan will decline sharply by 2030.

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