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At the Forex currency market the Japanese Yen rate is at a standstill, as investors continue to assess external background.

Forex forecast: MACD indicator for the pair USD/JPY has crossed the signal line from top to bottom, giving a pair sell signal. Stochastic Oscillator is going up in the neutral zone, giving a pair buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 80.95 the pair will go to 81.10 and 81.30. If the level of 80.30 is exceeded, traders’ target will be the level of 80.10.

The following Japanese data was released today:

– Index of leading indicators: -4.5%;

– Index of coincident indicators: -3.2%;

– Official reserves in April: $1136 billion against $1116.0 billion earlier.

In addition, it also became known that Japanese gold and foreign currency reserves has reached a new peak level

The minutes of the Bank of Japan meeting of 6-7 April was released yesterday; it says that some members of the CB believe that the policy of quantitative easing in March had a positive impact on the state of the financial market and business confidence; however it is still required to monitor carefully the effect of the high prices for commodity.  

In addition, the Bank of Japan is concerned about the effects of the interest rates rise by the European Central Bank.

In regards to the YPY rate, the document indicates that weak Yen positively affects the state of the capital expenditures. It should be taken into consideration that the meeting took place at the beginning of April when the YPY was really weak. 

Japan considers the possibility of raising taxes up to 15% of the sales tax from the current 10%. It became known earlier that surplus of trade balance amounted to Y196.5 billion in March against the level of Y931.94 billion a year earlier; tertiary index rose by 0.8% m/m in February against the fall by 0.1% in January - Japanese economy had really expanded, at least before the earthquake in March. Meanwhile, the level of export decreased by 2.2% y/y in March, while level of import increased by 11.9% y/y which is logical.

Note that according to the Bank of Japan real GDP will rise by 0.6% this year against the forecast of growth by 1.6% in January.

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