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At the Forex currency market the Japanese Yen rate continues yesterday's trend of falling back.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and is growing on small volumes, giving a buy signal. Stochastic Oscillator demonstrates similar trend in the neutral zone and is giving a buy signal.

Forex recommendations: in case of breakdown at the level of 77.90, the pair will go to 78.10 and 78.30.

It became known today that trade deficit has been recorded in Japan for the first time over 30 years. Exports in the country fell in December for the third time, which triggered trade deficit on annual basis.

According to Finance Ministry, shipments reduced by 8% y/y last month.

Budget deficit in Japan amounted to $32billion (2.49 trillion yen)

It seems that Japanese economy has been deprived of one of the main supportive items - its exports

A two-day meeting of the Bank of Japan ended yesterday; 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 continues to adhere to estimates that GDP growth will be by 2% in 2012,despite development of European crisis. (In April, estimated level was at2.2%). 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 on 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.

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