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At the Forex currency market theJapanese yen rate demonstrated ability to strengthen rapidly yesterday,although it did not reach 77.20. Today, the Yen tends to rise in price again.

Forex forecast: MACD indicator for the pair USD/JPY isgrowing slowly in the positive area and is giving a buy signal. Oscillator ismoving along the signal line in the neutral zone and is not giving a clearsignal.

Forex recommendations: in case of breakdownat the level of 77.60, the pair will go to 77.50 and 77.20. If downwardbreakdown does not take place, the pair will consolidate at the current levels.

The fact that those investors who want to sitout uneasy time in the safe currency have come became the main catalyst for theJPY growth.

It became known today that real GDP in Japanwas 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 currentaccount in Japan amounted to Y562.4 billion in October, demonstrating a fall of62.4% y/y. Morning statistics also showed that volume of credit outstanding inthe country increased by 0.2% y/y last month. It indicates the increase indemand for corporate financing and can be perceived positively. Level of bank lending is also growing steadily (+0.2% y/yin November: +0.1% y/y in October; -0.3% y/y in September). The head ofthe Bank of Japan Mr. Shirakawa noted earlier that growth of the JPY continuesto negatively impact on the local economy and that current rise of the JPY wasprovoked by European crisis. He believes that if appropriate measures are nottaken straight away, economy of Japan will decline sharply by 2030. Mr. Shirakawa also noted that interventions against Yenare acceptable and effective. However, practical steps to support the wordshave not been made: apparently the Japanese regulator is in the"fly-through mode" presently moreover, the Yen does not givegrounds for intervention due to its moderate activity.

Unemployment rate in Japan increased to 4.5%in October against the level of 4.1% in September, while expectations were at4.2%. The rate is increasing for the first time in three months, which is anindication of a new round of slowdown in Japanese economy. Large funds havebeen invested into Japanese economy following the earthquake in March, whichexplains fairly rapid recovery; however the rate of recovery started todecelerate lately. It should be closely tracked to what extent Europeaneconomic slump would affect Japanese economy.

It became known yesterday that preliminaryindex of coincident indicators in Japan rose by 1.3 points in October.

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