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At the Forex currency market the Japanese Yen rate goes upward slightly on Tuesday, staying, nevertheless in the five-day range of 81.94-83.04.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and it keeps going down, confirming a pair sell signal. Stochastic Oscillator is going down today too, being in the neutral zone and giving a similar signal.

Forex recommendations: in case of breakdown at the level of 82.25 traders’ targets will be the levels of 82.00 and 81.75 today.

The following Japanese data was released today:
– Bank lending decreased by 2.0% y/y in February against -1.9% y/y in January;
– Money supply M2 in February increased by 2.4$ y/y against +2.3% y/y in January;
– Current account balance in January: -47.6% y/y (Y461.9 billion) against +30.5% in December:
– Index of economic observers in February: 48.2 against 44.3 in January.

According to the Japanese observers the worsening political situation is a long term negative factor for the Japanese Yen; it especially concerns Prime-Minister of Japan, Naoto Khan. Khan’s positions had shattered after the resignation of the Minister of Foreign Affairs, Maekhara. First of all, in case of Khan’s resignation there will be difficulties in adopting the law of repayment of the considerable public debts of the Country of the Rising Sun. Khan brings forward a draft bill on the issue of government bonds. 

Chairman of the Bank of Japan Mr. Yagamuchi said yesterday that country’ economy shows signs of recovery: amid the growth of the developing markets, Japan also receives a catalyst to get out of hibernation

Yagamuchi also noted that current rise in commodity prices prevents from giving adequate forecasts

Interest rate of the Bank of Japan is at its lowest level of 0.1% per annum. The next meeting of the Bank of Japan is scheduled for 26 January. Other meetings of the regulator will be held on 16 March, 8 April, 23 May, 15 June, 16 July, 15 September, 14 October, 14 November, 13 December.

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