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At the Forex currency market the Japanese Yen rate started to weaken on Wednesday, as investors' sympathies are now focused on the USD.

Forex forecast: MACD indicator for the pair USD/JPY continues to go down in the negative area, volumes are increasing, which a;;together gives a sell signal. Stochastic Oscillator is traded downward, giving a weak sell signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 76.95, the pair will go to 77.00 and 77.15. If upward breakdown does not take place, the pair will focus on testing the level of76.70.

According to statistics released today, preliminary index of coincident indicators in Japan was at the level of -1.1% in November. However, preliminary index of leading indicators in Japan was at the level of +0.9% in November.

One of significant changes which is worth noting is the position of Japan on sanctions against Iran: Japan stated that the country is not going to support them, as it is concerned about the situation with oil prices and other energy products in the global market.

We would remind that a meeting of the Bank of Japan, which was held in December, was gloomy. Thus, the regulator noted that growth of economic activity has slowed down and activity in Japanese economy is zero. The Bank has revised economic situation assessment downward in comparison with November, which is logical. Japanese economy will start to recover as soon as pressure from Europe diminishes. In addition, interest rate in the country was left unchanged at the level of 0.1%. This decision had been expected.

Minutes of the last meeting of the Bank of Japan released earlier, stated that it is necessary to trace back the effect of the recent soft policy; special concern is caused by the possible impact from the expensive Yen.

Mr. Shirakawa, the head of the Bank of Japan note dearlier 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.

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