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At the Forex currency market the Japanese Yen rate continues to weaken gradually which is the consequence of increased interest to the USD which became the main protective currency at the moment.

Forex forecast: MACD indicator for the pair USD/JPY grows moderately in the positive area and is giving a buy signal. Stochastic Oscillator has come into overbought zone and is giving a similar signal.

Forex recommendations: in case of breakdown at the level of 78.15, the pair will go to 78.25 and 78.50. If upward breakdown does not take place, the pair will consolidate at the current levels.

Statistics released today showed that business sentiment in Japan deteriorated: Study from Tankan indicates that index of large producers amounted to -4 points in Q4 against preliminary +2 points and the forecast of March has shifted to -5 points against previously predicted +4.

This is a negative signal for the prospects of Japanese economy.

The data released this week showed that consumer confidence index in Japan fell for the first time in 7 months in November (38.1 against 38.6 previously), as global economy significantly affects Japan and its expensive Yen as well.

The head of the Bank of Japan Mr. Shirakawa noted earlier that growth of the JPY continues to negatively impact on the local economy and that current rise of the JPY was provoked by European crisis. He believes that if 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 Japanese regulator is in the “fly-through mode” presently moreover, the Yen does not give grounds for intervention due to its moderate activity.

Real GDP in Japan was revised downward  to +1.4% q/q (+5.6% y/y) in Q3 against preliminary +1.5% q/q (+6.0% y/y). New block of statistics showed that surplus of current account in Japan amounted to Y562.4 billion in October, demonstrating a fall of 62.4% y/y. Morning statistics also showed that volume of credit outstanding in the country increased by 0.2% y/y last month. It indicates the increase in demand for corporate financing and can be perceived positively. Level of bank lending is also growing steadily (+0.2% y/y in November: +0.1% y/y in October; -0.3% y/y in September).

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