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At the Forex currency market the Japanese Yen rate remains strong today, however activity in the currency has declined. Apparently, players expect intervention of the Bank of Japan caused by rapid strengthening of the JPY in the last few days.

Forex forecast: MACD indicator is in the negative area for the pair USD/JPY; it started to go down and is giving a sell signal. Stochastic Oscillator has come into oversold zone, and is giving a similar signal.

Forex recommendations: in case of breakdown at the level of 76.10, the pair will go to ? 76.05 and 75.80. Consolidation near the current levels is possible.

Most likely another round of strengthening inJ PY will cause a flow of comments from monetary authorities of the country. This is probably the factor that restrains activity of the players in the pair USD/JPY. Today, monetary politician Mr. Azumi stressed that if the need be, the Bank of Japan will take decisive and timely measures. Apparently, the time forth is has not come yet.

It became known today that unemployment rate in Japan rose to 4.6% in December against the level of 4.5% in November. At the same time, the level of unemployed decreased by 100 thousand against the growth of 80 thousand a month earlier. Nevertheless, this data has not radically affected general trend. Labour sector has been strongly affected by the over all economic slump in the country. Wages in Japan continue to decline; the data in December showed decline of 0.2% y/y, the same as in November. Therefore, Japanese wages have been declining for 8 months out of 12.

Some other positive data was more positive - preliminary volumes of industrial output rose by 4.0% m/m in December against expectations of growth of 2.7%.

At the same time, we cannot disregard thefact that, trade deficit has been recorded in Japan for the first time in 30years. Exports in the country fell in December for the third time, which triggered trade deficit on annual basis. According to the Ministry of Finance, shipments reduced by 8% y/y last month. Budget deficit in Japan amounted to $32billion (2.49 trillion yen). It seems that Japanese economy has been deprived of one of the main supportive tools - its exports. Currently, economic stimulus programs for the total amount of 20 trillion yen, are being implemented in Japan. They were designed to increase demand and finalize work to eliminate eafte rmaths of tsunami and earthquake in March. These funds shall also revive employment sector.

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