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At the Forex currency market the Japanese Yen rate remains under the drastic pressure on Monday after the strongest in all history of Japan earthquake and subsequent tsunami.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY and is moving along the signal line, not giving a clear signal. Stochastic Oscillator goes down in the neutral zone today, giving a pair sell signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 82.30 the pair will go to 82.50 and 82.90. If aggressive traders will be back at the market, target of sales will be the level of 81.75 and more distant target today will be the local lows at 80.60.

The following Japanese news was released today:

– Consumer confidence in February: 40.6 points against 41.1 in January;

– Revised industrial production in January: +1.3% m/m against the previous +2.4% m/m.

The largest earthquake in the history of Japan erupted on Friday and triggered a tsunami. Japanese cities are still counting devastation; the death toll is more than several thousands. 

Central Bank has already issued $87.5 billion to reassure stock markets where the panic started last week. Private Banks can count on this fund to issue short term loans. 

In addition, the regulator will allocate $220 billion to rebuild national economy, which has been weak and recent developments will become extremely heavy burden for the economy.

It became known last week that real revised level of GDP in Japan declined by 0.3% on quarterly basis (-1.3% y/y) in QIV against preliminary level of -0.3% q/q (-1.1% y/y).

Japanese economy has reduced more than expected, which calls into question excessively optimistic statement of the authorities of the country about future outlooks. Chairman of the Bank of Japan Mr. Yagamuchi said earlier that country’ economy shows signs of recovery: amid the growth of the developing markets, Japan also receives a catalyst to get out of hibernation. Amid latest developments, optimism of monetary politicians is out of place.

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