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At the Forex currency market the Japanese Yen rate tries to grow again on Tuesday amid escalation of the conflict in the Middle East investors have shifted to the safer currencies, including YPY. However, it has nothing to do with recognition of the stability in Japan.

Forex forecast: MACD indicator is in the positive area for the pair USD/JPY and goes down; volume of trading also declines, draining away a sell signal. Stochastic Oscillator remains in the oversold zone today and maintains a similar signal.

Forex recommendations: in case of breakdown at the level of 81.50 the pair will go to 81.40 and 81.25. If downward breakdown does not take place the pair will consolidate close to the current levels.

It became known today, that confidence in small business in Japan fell by 13.4 points in April, to the level of 36.1 points which became the lowest level since May, 2009, which is logically explained by the aftermath of the earthquake and tsunami in March.

It became known at the beginning of the week, that the head of the Bank of Japan Mr. Shirakawa said that following the results in quarters I and II,  it can be expected that level of GDP will decline, due to the serious aftermath of the earthquake in March. He thinks that the main problem is the shutdown of the production facilities, which in any way or other is connected with the power failure. Shirakawa believes that as soon as the power supply will reach the level of 11 March, production capacity will be restored. At the same time Central Bank is still ready to take measures to support economy, if required.

Japan also considers the possibility of raising taxes to 15% of the sales tax from the current 10%. It became known earlier that surplus of trade balance amounted to Y196.5 billion in March against the level of Y931.94 billion a year earlier; tertiary index rose by 0.8% m/m in February against the fall by 0.1% in January - Japanese economy had really expanded but it was before the earthquake in March.

Meanwhile, the level of export decreased by 2.2% y/y in March, while level of import increased by 11.9% y/y which is logical.
It became known earlier that Japanese government decided not to issue new government bonds aimed at financing supplementary budget which is designated for recovery process after the earthquake and tsunami in March. In addition, last Friday, government of the Country of the Rising Sun approved the budget in the amount of 4.015 trillion yen designated for the North-East regions of the country which suffered the most losses during the earthquake. 

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