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The Japanese Yen rate continues to rise at the Forex currency market at the beginning of the week.

Forex forecast: MACD indicator for the pair USD/JPY hasbroken through the signal line from top to bottom and is traded downward; volumes are increasing which in over all gives a sell signal. Stochastic Oscillator has come out of the overbought zone and is steadily growing, giving a buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 76.90, the pair will go to 77.10 and 77.40. If upward breakdown does not take place, the pair will aim to76.50.

Japanese market is closed today.

We would remind that a meeting of the Bank of Japan, which was held in December, was gloomy. Thus, the regulator noted that growth of economic activity has slowed down and activity in Japanese economy is zero. The Bank has revised economic situation assessment downward in comparison with November, which is logical. Japanese economy will start to recover as soonas pressure from Europe diminishes. In addition, interest rate in the countrywas left unchanged at the level of 0.1%. This decision had been expected.

Minutes of the last meeting of the Bank of Japan released earlier, states that it is necessary to trace back the effect ofthe recent soft policy; special concern is caused by the potential impact fromthe expensive Yen.

The head of the Bank of Japan Mr. Shirakawa noted earlierthat growth of the JPY continues to negatively impact on the local economy andthat current rise of the JPY was provoked by European crisis. He believes thatif appropriate measures are not taken straight away, economy of Japan will decline sharply by 2030. Mr. Shirakawa also noted that interventions against Yen are acceptable and effective. However, practical steps to support the words have not been made: apparently the Japaneseregulator is in the "fly-through mode" presently moreover, the Yendoes not give grounds for intervention due to its moderate activity.

The fall in the exports levels can be easilyattributed to the Euro: Finance Minister of Japan Mr. Azumi said last Fridaythat the fall of the Euro had caused significant damage to the exports levels,while financial authorities of Europe are wasting time and do not takeessential measures. Attitude of Japan to this issue is logical: EU shall createa kind of barrier to prevent expansion of the debt problems.

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