Is Japan recovering from recession?

Forex news. Today appeared the data about Japanese financial indicators. Thus, GDP for the 2^nd quarter of 2011 has decreased by 1.3% on an annual basis and by 0.3% in comparison with the 1^st quarter of current year. GDP deflator has amounted to -2.2% during the 2^nd quarter of current year. This indicates that deflation pressure remains in Japanese economy during the 3^rd quarter already, although this number appeared to better than had been expected, as Kyodo News agency admits.

Experts remain optimistic about the possibility of the Land of Rising Sun to quickly restore economic stability after the consequences of the earthquake and the disaster at Fukushima-1 nuclear power station. It is worth mentioning that last week Japanese government lowered the forecast of GDP growth for the current year from 1.5% to 0.5%.

The rate of Japanese yen is being traded within “the moment of truth” point, as claimed by the experts of the Department of In-Depth Trade System Study of Masterforex-V, who also explain that at present bear wave а(С)/С 80.22-76.28 is over. A strong movement into both directions is expected further. Firstly, breaking another historic minimum will indicate the formation of wave с(С) of Daily/Weekly level, and 75.80 will become the closest level of support. Secondly, breaking pivot MF and MF sloping channel will indicate the already formed bear wave with reduced С and a strong upward movement to wave А of higher wave level.