Introduction to Forex:

Being the main force driving the global economic

market, currency is no doubt an essential element for a
country. However, in order for all the countries with
different currencies to trade with one another, a system
of exchange rate between their currencies is needed;
this system is formally known as foreign exchange or currency exchange.

The foreign exchange market (forex, FX, or currency market) is a worldwide

decentralized over the counter financial market for the trading. FOREX is the
world’s largest and most liquid trading market. Many consider FOREX as the
best home business you can ever venture in. Even though regular people have
had the opportunity to take part in trading foreign currencies for profit (in the
same way banks and large corporations do) since 1998, it is just now becoming
the cool, hip, new "thing" to talk about at parties, business events, and other
social gatherings.

As a successful trader said, Trading FOREX is like picking money up off the
floor. Not trading FOREX is like leaving it there for someone else to pick up."
Others in the industry have also said, Trading FOREX is like having an ATM
machine on your own computer.

Here's what you are actually trading when you participate in the Foreign
Exchange (FOREX) market:

Essentially, like the large banks who use the FX market to protect themselves
from the fluctuating exchange rate of different currencies, as an investor, what a
FX trader is doing is simultaneously exchanging one countries currency for
another. So, in actuality, they're electronically trading a currency-pair and the
price that is quoted to us is the exchange rate between the two currencies.

In other words, simply the quoted price is how many of the one currency is worth
1 of the other currency.

1
Example:

USD/JPY last trade 92.29 - One USD is worth $92.29 JPY. The first currency (in
this example, the USD) is referred to as the base currency and the second (/JPY)
as the counter or quote currency.

The FOREX has a DAILY trading volume of around $3.2 trillion dollars - 30 times
larger than the combined volume of all U.S. equity markets. This means that
1,498,574 skilled traders could each take 1 million dollars out of the FOREX
market every day and the FOREX would still have more money left than the New
York Stock exchange every day!

The FOREX plays a vital role in the world economy and there will always be a
tremendous need for the FOREX. International trade increases as technology
and communication increases. As long as there is international trade, there will
be a FOREX market. The FX market has to exist so a country like Japan can sell
products in the United States and be able to receive Japanese Yen in exchange
for US Dollar.

Significance:
The United States is a major player in the forex industry as the dollar is involved
in 86 percent of the currency pairs traded. The Euro is next at 37 percent of
the market, and the yen holds 16.5 percent. With trillions of dollars
exchanging hands on a moment-by-moment basis, the value of currencies
also changes as fast, allowing investors to buy and sell currency pairs
through the 24-hour market for a profit. For example, in a given day, the
British pound/U.S. dollar pair (GBP/USD) may see a change in value within
a 24-hour day by 400 pips. If each pip represents $10 (a standard lot size
for most forex trading platforms), theoretically, on just the trade of that pair,
an investor could increase his financial portfolio by $4,000 in 24 hours. The
potential for massive profit has created an incentive to participate in forex
much as did the gold rush of the mid-1800s.

2
 Introduction of USA
Background:
Britain's American colonies broke with the mother
country in 1776 and were recognized as the new nation
of the United States of America following the Treaty of
Paris in 1783. During the 19th and 20th centuries, 37
new states were added to the original 13 as the nation expanded across the
North American continent and acquired a number of overseas possessions. The
two most traumatic experiences in the nation's history were the Civil War (1861-
65), in which a northern Union of states defeated a secessionist Confederacy of
11 southern slave states, and the Great Depression of the 1930s, an economic
downturn during which about a quarter of the labor force lost its jobs. Buoyed by
victories in World Wars I and II and the end of the Cold War in 1991, the US
remains the world's most powerful nation state. The economy is marked by
steady growth, low unemployment and inflation, and rapid advances in
technology.

Economy:
The US has the largest and most technologically powerful
economy in the world, with a per capita GDP of $46,900. In
this market-oriented economy, private individuals and
business firms make most of the decisions, and the federal
and state governments buy needed goods and services predominantly in the
private marketplace. US business firms enjoy greater flexibility than their
counterparts in Western Europe and Japan in decisions to expand capital plant,
to lay off surplus workers, and to develop new products. At the same time, they
face higher barriers to enter their rivals' home markets than foreign firms face
entering US markets. US firms are at or near the forefront in technological
advances, especially in computers and in medical, aerospace, and military
equipment; their advantage has narrowed since the end of World War II. The
onrush of technology largely explains the gradual development of a "two-tier

3
labor market" in which those at the bottom lack the education and the
professional/technical skills of those at the top and, more and more, fail to get
comparable pay raises, health insurance coverage, and other benefits. Since
1975, practically all the gains in household income have gone to the top 20% of
households. The war in March-April 2003 between a US-led coalition and Iraq,
and the subsequent occupation of Iraq, required major shifts in national
resources to the military. Hurricane Katrina caused extensive damage in the Gulf
Coast region in August 2005, but had a small impact on overall GDP growth for
the year. Soaring oil prices between 2005 and the first half of 2008 threatened
inflation and unemployment, as higher gasoline prices ate into consumers'
budgets. Imported oil accounts for about two-thirds of US consumption. Long-
term problems include inadequate investment in economic infrastructure, rapidly
rising medical and pension costs of an aging population, sizable trade and
budget deficits, and stagnation of family income in the lower economic groups.
The merchandise trade deficit reached a record $840 billion in 2008 before
shrinking to $450 billion in 2009. The global economic downturn, the sub-prime
mortgage crisis, investment bank failures, falling home prices, and tight credit
pushed the United States into a recession by mid-2008. GDP contracted till the
third quarter of 2009, making this the deepest and longest downturn since the
Great Depression. To help stabilize financial markets, the US Congress
established a $700 billion Troubled Asset Relief Program (TARP) in October
2008. The government used some of these funds to purchase equity in US banks
and other industrial corporations. In January 2009 the US Congress passed and
President Barrack OBAMA signed a bill providing an additional $787 billion fiscal
stimulus to be used over 10 years - two-thirds on additional spending and one-
third on tax cuts - to create jobs and to help the economy recover. Approximately
two-thirds of these funds will have been injected into the economy by the end of
2010. In March 2010, President OBAMA signed a health insurance reform bill
into law that will extend coverage to an additional 32 million American citizens by
2016, through private health insurance for the general population and Medicaid
for the impoverished.1

1
https://www.cia.gov/library/publications/the-world-factbook/geos/us.html
4
 Introduction of JAPAN
Background:
In 1603, after decades of civil warfare, the Tokugawa
shogunate (a military-led, dynastic government) ushered in a
long period of relative political stability and isolation from
foreign influence. For more than two centuries this policy
enabled Japan to enjoy a flowering of its indigenous culture. Japan opened its
ports after signing the Treaty of Kanagawa with the US in 1854 and began to
intensively modernize and industrialize. During the late 19th and early 20th
centuries, Japan became a regional power that was able to defeat the forces of
both China and Russia. It occupied Korea, Formosa (Taiwan), and southern
Sakhalin Island. In 1931-32 Japan occupied Manchuria, and in 1937 it launched
a full-scale invasion of China. Japan attacked US forces in 1941 - triggering
America's entry into World War II - and soon occupied much of East and
Southeast Asia. After its defeat in World War II, Japan recovered to become an
economic power and an ally of the US. While the emperor retains his throne as a
symbol of national unity, elected politicians hold actual decision-making power.
Following three decades of unprecedented growth, Japan's economy
experienced a major slowdown starting in the 1990s, but the country remains a
major economic power. In January 2009, Japan assumed a nonpermanent seat
on the UN Security Council for the 2009-10 terms.

Economy:
In the years following World War II, government-industry
cooperation, a strong work ethic, mastery of high technology,
and a comparatively small defense allocation (1% of GDP)
helped Japan develop a technologically advanced economy.
Today, measured on a purchasing power parity basis, Japan is
the third-largest economy in the world after the US and China; measured by
official exchange rates, however, Japan is the second largest economy in the
world behind the US. Two notable characteristics of the post-war economy were
the close interlocking structures of manufacturers, suppliers, and distributors,

5
known as keiretsu, and the guarantee of lifetime employment for a substantial
portion of the urban labor force. Both features are now eroding under the dual
pressures of global competition and domestic demographic change. Japan's
industrial sector is heavily dependent on imported raw materials and fuels. A tiny
agricultural sector is highly subsidized and protected, with crop yields among the
highest in the world. Usually self sufficient in rice, Japan imports about 60% of its
food on a caloric basis. Japan maintains one of the world's largest fishing fleets
and accounts for nearly 15% of the global catch. For three decades, overall real
economic growth had been spectacular - a 10% average in the 1960s, a 5%
average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly
in the 1990s, averaging just 1.7%, largely because of the after effects of
inefficient investment and an asset price bubble in the late 1980s that required a
protracted period of time for firms to reduce excess debt, capital, and labor. In
October 2007 Japan's longest post-war period of economic expansion ended
after 69 months and Japan entered into recession in 2008, with 2009 marking a
return to near 0% interest rates. The Japanese financial sector was not heavily
exposed to sub-prime mortgages or their derivative instruments and weathered
the initial effect of the global credit crunch, but a sharp downturn in business
investment and global demand for Japan's exports in late 2008 pushed Japan
further into a recession. The 10-year privatization of Japan Post, which has
functioned not only as the national postal delivery system but also, through its
banking and insurance facilities, as Japan's largest financial institution, began in
October 2007, marking a major milestone in the process of structural reform;
however, in December 2009, the Democratic Party of Japan-led government
passed a law to freeze future sales of Japan Post shares, halting the privatization
process begun by Liberal Democratic Party governments. Debate continues on
the role of and effects of reform in restructuring the economy and funding to
stimulate consumption in the face of a tight fiscal situation. Japan's huge
government debt, estimated to have reached 192% of GDP in 2009, and an
aging and shrinking population are two major long-run problems.2

2
https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html
6
 INDUSTRY SNAPSHOT AND INDUSTRY PROJECTION

Forex Trading History

The modern online Forex history begins in 1973. Even though

currency trading has been around since the times of ancient Egypt,
which at that time the market was extremely primitive, and there
were no advance trading tools as today's fundamental analysis.

Free Floating exchange rates came into use when the Breton Woods agreement
ended. This occurred after this international financial system was in operation for
three decades in the Forex history.

During 1973, the UK, facing financial problems, floated its currency. Other
currencies began to lose value, and this led the European economies to also
float their currencies.

1994 saw the first online currency trading introduced to Forex history. This had a
large impact on the development of the Euro currency, and introduced a new
major contender to the control of the USD in the Forex history. By 2002 the Euro
became the official currency for 12 European nations, and in the past few years
more nations have joined this agreement. The modern online Forex history
offered new options for the online trader, such as the use of margin account to
leverage investments, and this is all thanks to the contribution of the internet to
the Forex history.

Forex is the largest marketplace in the world with more than 3.2 trillion dollars
changing hands daily and so making it one of the most attractive and lucrative
markets.

7
 OPERATING ENVIRONMENT
Foreign currency exchange, or so called FOREX or FX,
had become one of the best home businesses you can
venture in nowadays. By trading foreign currencies thru
Internet, theoretically now one can make money at
anywhere, anytime. For the new comers, Forex is the
world largest trading market, yielding an average of
$3.2 trillion daily turnover. As the majority who trade
FOREX are speculators, FOREX is also well known as the most liquid trading
available.

Nowadays, we are seeing increasing numbers of Forex investment opportunities

as well as Forex traders in all over the world. As loses in Forex can be huge, it is
best advise that beginners to learn about the risks involve in Forex trading.

Often we heard that getting started in Forex trading is easy and instant. All you
need is a computer with Internet connection and a funded Forex account with
foreign currency exchange broker. However, the hard part is who to open the
Forex account with (meaning who should we appoint as our Forex dealer)?

Forex market is a non-centralized market. There is no common market place for

Forex traders and there is no so-call 'standard' in foreign currency exchange
price. Different Forex dealers offer very different deals to their customers. As an
individual FX trader, you depends solely on the dealer to make a transaction in
your trades, thus picking up the right dealer is extremely crucial in your risk.

The Forex market behaves differently from other markets! The speed, volatility,
and enormous size of the Forex market are unlike anything else in the financial
world. The Forex market is uncontrollable - no single event, individual, or factor
rules it.

Currency markets are highly speculative and volatile in nature. Any currency can
become very expensive or very cheap in relation to any or all other currencies in

8
a matter of days, hours, or sometimes, in minutes. This unpredictable nature of
the currencies is what attracts an investor to trade and invest in the currency
market.

Exit the Forex market at profit targets Take profit take orders, allow Forex traders
to exit the Forex market at pre-determined profit targets. If you are short (sold) a
currency pair, the system will only allow you to place a limit order below the
current market price because this is the profit zone. Similarly, if you are long
(bought) the currency pair, the system will only allow you to place a take profit
order above the current market price. Take profit orders help create a disciplined
trading methodology and make it possible for trader to walk away from the
computer without continuously monitoring the market.

Features:

• Daily Trading Volume is Roundabout $3.2 trillion

• Bigger Market of the World
• Risk Manageability
• Information Flow
• 24 hours Market Liquidity
• Better Execution Quality and Speed
• Commission Free Trading
• The ability to Choose your Trading Hours
• Being able to Find Profitable Trades in Both Rising and Falling Markets
• High Leverage
• Fixed Spread
• 100% Autopilot
• Easily Achieve the Bottom Line
• Real Live Trading

9
 Risk Factors

One of the first things most traders hear when they begin
their Forex journey is the fact that Forex trading is risky.
Many new traders choose to pay little attention to all the risk
warnings and continue. I was personally the same at the
beginning because I so eager to get started!

It is very important to fully understand the Forex risk factors as to be a successful

Forex trader, you need to know how best to minimize them.

Perhaps the single biggest risk factor in Forex trading is the use of too much
leverage! I have spoken to many traders who start trading with as little as $100
on a mini Forex account. I always encourage these traders not to do it and to
learn more about proper risk management. $100 with a mini account will almost
always have just one single outcome, a margin call.

Let’s look at why this is. If you have 100:1 leverage from your broker to open a
GBP/USD position for 1 mini lot is going to cost $10 in margin. This would leave
$90 for trading. With a 1 mini lot GBP/USD position each pip is worth $1. This
would mean that only a 90 pip movement in the wrong direction would mean
result in a margin call. Also, in these 90 pips, the spread would need to be
included.

GBP/USD often moves more than 90 pips in a single day.

So there we have it, one of the single biggest risks in Forex trading for new
traders is the overuse of leverage.

Let’s now look at some of the other risks in Forex trading.

When trading Forex it’s important to realize that no matter how sure you are the
market will move in the way you expect, anything can happen, at any moment in
time. A good example of this was when the US Government made it common
knowledge that they were going to bail out Fannie Mai and Freddie Mac, the
10
dollar appreciated considerably. If you had an intra short on the dollar, you would
not have been best pleased. This example simply illustrates that many major
factors that move the market can be completed unexpected. If you can prepare
your strategy to take into consideration unforeseen events, you can lower your
risk. One option is to use stop losses to make sure you are always prepared for
unforeseen events that could potentially move the market in a big way.

Another important thing we can do is to practice our strategies and systems

thoroughly on a demo account before trading them on a live account.

In conclusion, no matter how you look at the Forex risk factors, they are there
and they are considerable. To be a successful trader, it important to fully
understand and do everything possible to keep risk to a minimum at all times.3

People are most concern about risk and Forex trading can be extremely risky.
The material contained herein is for informational purposes only and is not to be
constructed as an offer to buy, sell, or hold on the Forex market. There are no
implicit guarantees of accuracy. All trading results may vary, and trading on the
Forex market is not for everybody. You should only use risk capital- money that a
person can afford to lose. More than 95% of traders lose money.4

Risk Control:
In order to belong to the top 2% of Forex traders, you must know how to define
your risk before you enter a trade; you must know how to properly place stops, -
how to use margins set by your dealer, and how to take advantage of leverages
set by you and your dealer on your trading platform. Finally, you must also
understand that money management, and position management is the key
aspects of your trading, - not excluding, your proven trading strategies. All factors
are subject to the terms and conditions on the market. - What about patterns?
You need to understand how patterns are formed.

3
http://fxacademy.net/forex-risk-factors/
4
http://www.forexoffice.ca/index.php?option=com_content&view=article&id=295:risk-
factor-&catid=54:r&Itemid=41
11
 Corporate Information

Emperor and Empress of Japan

Akihito and Empress Michiko
Since 10 July 2009

Prime Minister of Japan

Yukio Hatoyama
since 16 September, 2009
Residence: Sori Kotei
Appointer: The Diet and the Emperor

Finance Minister of Japan

Naoto Kan
Since 10 January, 2010

Central Bank of Japan

Headquarters Chuo, Tokyo, Japan

Established 1882
Governor Masaaki Shirakawa
Central Bank of Japan
Currency Japanese yen
ISO 4217 Code JPY
Base borrowing rate 0.105%
Website www.boj.or.jp

12
Government of Japan

The current Japanese constitution was promulgated in the year 1946 during the
occupation by the Allied powers:

Legislature:
The Japanese parliament is called the Diet. It consists of the House of
Representatives (480 members) and the House of Councilors (242 members).
The members of the Diet are elected by the Japanese people.

Executive:
The cabinet is headed by the Prime Minister. The cabinet further consists of the
ministers which are appointed by the prime minister and are usually members of
the Diet. The prime minister is elected by the Diet.

Judiciary:
The highest court is the Supreme Court. Other courts are district courts, high
courts, family courts, and summary courts. Judges are appointed by the cabinet.

Elections:
The minimum voting age is 20 years. Women received the right to vote in the
new constitution. Elections for the House of Representatives are carried out
every four years, and half of the House of Councilors is elected every three
years. Beside the national elections there are prefecture and municipal elections.

The Emperor does not have any effective power but is only the symbol of the
state.

13
 Famous Places of Japan

Mathushima: The view from Godaido The zuiganji temple is

beautiful. Also the scene from the Ootaka summit of the mountain
in woods is woundaful.

Miyazima As for Miyajima, it is believed the island itself is very

sacred from ancient times.

Amanohasidate Amanohashidate looked at from groin is called

the hiryuukan from seeming fly away by the dragon.

Gorakuen Plum and cherry trees are beautiful in spring. Louts

and Japanese iris are beautiful in summer. The Kourakuen has
many highlights every season.

KairakuenTokugawa Saisyou completed Kairakuen in Mito

city.Peripheral scenery is taken, and air and the light and shade at
the four seasons are abundant.

KenrokuenKenrokuen garden was a garden in which it had

belonged to Canazawa castle in Kanazawa city.It is said that it is
a start of Kenrokuen garden for Maeda thunanori to build the
Renthiothin in 1676, and to have called the garden "Renthi
garden".

14
 Fundamental Analysis

Fundamental analysis is a currency trading strategy wherein currencies are

bought and sold according to various financial and non-financial factors. Among
others, these factors include :
 Economic indicators of the currency
 Government Monetary policy
 Employment indicators, especially unemployment
 Consumer spending indicators
 Interest rates
 Inflation
 Social and political forces
 Economic growth rates

ISM Non-Manufacturing PMI:

It's a leading indicator of economic health - businesses react quickly to market

conditions, and their purchasing managers hold perhaps the most current and
relevant insight into the company's view of the economy.

FOMC (Federal Open Market Committee) Meeting Minutes:

It's a detailed record of the FOMC's most recent meeting, providing in-depth
insights into the economic conditions that influenced their vote on where to set
interest rates.

CB Consumer Confidence:

Financial confidence is a leading indicator of consumer spending, which

accounts for a majority of overall economic activity.

Non-Farm Employment Change:

15
Change in the number of employed people during the previous month, excluding
the farming industry, it is an important leading indicator of consumer spending,
which accounts for a majority of overall economic activity.

Unemployment Rate:

It is percentage of the total work force that is unemployed and actively seeking
employment during the previous month. Although it's generally viewed as a
lagging indicator, the number of unemployed people is an important signal of
overall economic health because consumer spending is highly correlated with
labor-market conditions

Prelim GDP q/q:

It is the change in the inflation-adjusted value of all goods and services produced
by the economy. It's the broadest measure of economic activity and the primary
gauge of the economy's health

BOJ Press Conference:

It's among the primary methods the BOJ uses to communicate with investors
regarding monetary policy. It covers the factors that affected the most recent
interest rate decision, the overall economic outlook, inflation, and clues regarding
future monetary policy.

Core CPI m/m:

It is the change in the price of goods and services purchased by consumers.

Consumer prices account for a majority of overall inflation. Inflation is important
to currency valuation because rising prices lead the central bank to raise interest
rates out of respect for their inflation containment mandate.

16
 Technical Analysis

Technical analysis is a method of forecasting price movements by looking at

purely market-generated data. It is the art of charting financial instruments and
overlaying mathematical indicators to derive trading ideas. It is utilized to
evaluate price predictability and is based on the notion that prices do not move
randomly but instead move in repeating and identifiable patterns.
Almost every trader uses some form of technical analysis. Even the most
reverent follower of market fundamentals is likely to glance at price charts before
executing a trade. At their most basic level, these charts help traders determine
ideal entry and exit points for a trade.
There are literally hundreds of technical analysis indicators utilized by traders
and analysts to evaluate trading activity. The three key principles of technical
analysis are:
1. All market information is discounted and reflected in market prices.
2. Prices move in trends and trends persist.
3. Market action is repetitive.
Technical analysis is the best method to predict short term foreign currency
changes and has the ability to generate specific information and forecasts about
currencies that no other method could. Even though a lot of beginning traders
avoid using technical analysis because of its use of mathematics, the traders that
learn the basics in technical analysis find it easier to invest later and pick it up in
a short time, even if they learn trading foreign currencies by themselves.

17
Monthly Analysis

Range Range Range Magnet

Month Close High Low H/L H/C C/L Point
Jan-00 107.47 107.56 101.42 614 104.49
Feb-00 110.12 111.75 107.05 470 428 42 109.4
Mar-00 102.28 110.3 101.99 831 18 813 106.145
Apr-00 108.24 108.27 102 627 599 28 105.135
May-00 107.72 110.05 106.04 401 181 220 108.045
Jun-00 105.86 109.1 103.92 518 138 380 106.51
Jul-00 109.37 109.8 105.25 455 394 61 107.525
Aug-00 106.78 109.75 105.9 385 38 347 107.825
Sep-00 108.13 108.46 104.76 370 168 202 106.61
Oct-00 109.03 109.53 107.4 213 140 73 108.465
Nov-00 110.37 111.5 106.68 482 247 235 109.09
Dec-00 114.69 115.11 110.15 496 474 22 112.63
Jan-01 116.4 119.85 113.55 630 516 114 116.7
Feb-01 117.45 117.95 114.36 359 155 204 116.155
Mar-01 126.15 126.3 117.1 920 885 35 121.7
Apr-01 123.69 126.85 120.94 591 70 521 123.895
May-01 119.16 124.02 118.51 551 33 518 121.265
Jun-01 124.79 124.98 118.3 668 582 86 121.64
Jul-01 125.1 126.05 122.71 334 126 208 124.38
Aug-01 118.79 125.19 118.45 674 9 665 121.82
Sep-01 119.48 122.06 115.8 626 327 299 118.93
Oct-01 122.32 123.35 119.4 395 387 8 121.375
Nov-01 123.5 124.55 119.75 480 223 257 122.15
Dec-01 131.56 132 123.25 875 850 25 127.625
Jan-02 134.77 135.15 130.4 475 359 116 132.775
Feb-02 133.64 135.04 131.85 319 27 292 133.445
Mar-02 132.67 133.85 126.32 753 21 732 130.085
Apr-02 128.48 133.86 127.67 619 119 500 130.765
May-02 124.26 129.09 122.83 626 61 565 125.96
Jun-02 119.47 125.92 118.36 756 166 590 122.14
Jul-02 119.79 120.75 115.5 525 128 397 118.125
Aug-02 118.67 121.35 116.3 505 156 349 118.825
Sep-02 121.77 124.23 116.85 738 556 182 120.54
Oct-02 122.67 125.65 121.67 398 388 10 123.66
Nov-02 122.63 123.18 119.13 405 51 354 121.155
Dec-02 118.71 125.73 118.27 746 310 436 122
Jan-03 119.95 120.66 117.37 329 195 134 119.015
Feb-03 118.08 121.78 116.86 492 183 309 119.32
Mar-03 118 121.87 116.3 557 379 178 119.085
Apr-03 118.92 121.15 117.6 355 315 40 119.375
May-03 119.35 119.65 115.1 455 73 382 117.375
Jun-03 119.75 120.23 117.18 305 88 217 118.705
Jul-03 120.6 120.63 116.6 403 88 315 118.615
Aug-03 116.87 120.68 116.15 453 8 445 118.415
Sep-03 111.4 117.7 110.13 757 83 674 113.915
Oct-03 110.03 111.58 107.88 370 18 352 109.73
Nov-03 109.52 111.52 107.55 397 149 248 109.535
Dec-03 107.35 110.01 106.73 328 49 279 108.37
Jan-04 105.75 108.3 105.45 285 95 190 106.875
18
Feb-04 109.19 109.86 105.17 469 411 58 107.515
Mar-04 104.37 112.31 103.46 885 312 573 107.885
Apr-04 110.4 111.01 103.47 754 664 90 107.24
May-04 109.4 114.9 108.33 657 450 207 111.615
Jun-04 108.89 111.96 107.05 491 256 235 109.505
Jul-04 111.36 112.46 107.58 488 357 131 110.02
Aug-04 109.2 112.07 108.78 329 71 258 110.425
Sep-04 110.01 111.71 108.97 274 251 23 110.34
Oct-04 105.91 111.45 105.8 565 144 421 108.625
Nov-04 102.95 107.3 102.23 507 139 368 104.765
Dec-04 102.5 106.2 101.83 437 325 112 104.015
Jan-05 103.64 105.19 101.67 352 269 83 103.43
Feb-05 104.5 106.86 103.35 351 322 29 105.105
Mar-05 107.19 107.7 103.65 405 320 85 105.675
Apr-05 104.85 108.9 104.58 432 171 261 106.74
May-05 108.5 108.56 104.2 436 371 65 106.38
Jun-05 110.82 110.98 106.51 447 248 199 108.745
Jul-05 112.4 113.73 109.87 386 291 95 111.8
Aug-05 110.6 112.77 109.05 372 37 335 110.91
Sep-05 113.62 113.69 108.75 494 309 185 111.22
Oct-05 116.36 116.45 113.02 343 283 60 114.735
Nov-05 119.81 119.94 116.26 368 358 10 118.1
Dec-05 117.95 121.47 115.52 595 166 429 118.495
Jan-06 117.31 117.95 113.41 454 0 454 115.68
Feb-06 115.73 119.4 115.68 372 209 163 117.54
Mar-06 117.72 119.2 115.45 375 347 28 117.325
Apr-06 113.78 118.9 113.66 524 118 406 116.28
May-06 112.6 114.17 108.97 520 39 481 111.57
Jun-06 114.46 116.71 111.32 539 411 128 114.015
Jul-06 114.63 117.88 113.45 443 342 101 115.665
Aug-06 117.39 117.48 113.97 351 285 66 115.725
Sep-06 118.1 118.29 115.57 272 90 182 116.93
Oct-06 116.92 119.88 116.62 326 178 148 118.25
Nov-06 115.74 118.6 115.4 320 168 152 117
Dec-06 119.07 119.23 114.43 480 349 131 116.83
Jan-07 120.71 122.2 117.98 422 313 109 120.09
Feb-07 118.4 122.1 117.5 460 139 321 119.8
Mar-07 117.78 118.87 115.16 371 47 324 117.015
Apr-07 119.53 119.87 117.4 247 209 38 118.635
May-07 121.67 121.99 119.07 292 246 46 120.53
Jun-07 123.04 124.14 120.77 337 247 90 122.455
Jul-07 119.04 123.67 118.02 565 63 502 120.845
Aug-07 115.96 119.84 111.6 824 80 744 115.72
Sep-07 114.74 116.48 112.6 388 52 336 114.54
Oct-07 115.36 117.95 113.25 470 321 149 115.6
Nov-07 111.18 115.92 107.23 869 56 813 111.575
Dec-07 111.77 114.66 109.56 510 348 162 112.11
Jan-08 106.48 112.1 104.97 713 33 680 108.535
Feb-08 103.82 108.61 103.83 478 213 265 106.22
Mar-08 99.73 104.19 95.77 842 37 805 99.98
Apr-08 103.94 104.89 99.6 529 516 13 102.245
May-08 105.47 105.9 102.58 332 196 136 104.24
Jun-08 106.05 108.59 103.87 472 312 160 106.23
19
 Jul-08 107.89 108.38 103.77 461 233 228 106.075
Aug-08 108.69 110.66 107.28 338 277 61 108.97
Sep-08 106.43 109.19 103.5 569 50 519 106.345
Oct-08 98.71 106.54 90.94 1560 11 1549 98.74
Nov-08 95.68 100.55 93.67 688 184 504 97.11
Dec-08 90.8 95.8 87.15 865 12 853 91.475
Jan-09 89.85 94.65 87.11 754 385 369 90.88
Feb-09 97.79 98.71 88.6 1011 886 125 93.655
Mar-09 97.08 99.68 93.55 613 189 424 96.615
Apr-09 98.63 101.44 95.63 581 436 145 98.535
May-09 95.28 99.8 93.87 593 117 476 96.835
Jun-09 96.35 98.89 94.44 445 361 84 96.665
Jul-09 94.78 96.98 91.74 524 63 461 94.36
Aug-09 92.99 97.78 92.54 524 300 224 95.16
Sep-09 89.77 93.45 88.26 519 46 473 90.855
Oct-09 90 92.32 88.01 431 255 176 90.165
Nov-09 86.43 91.32 84.83 649 132 517 88.075
Dec-09 93.08 93.14 86.16 698 671 27 89.65
Jan-10 90.27 93.76 89.15 461 68 393 91.455
Feb-10 88.91 92.14 88.58 356 187 169 90.36
Mar-10 92.46 92.95 88.15 480 404 76 90.55

Range H/L H ig h -L o w R a n g e M o n th ly

Minimum 213
1800
Maximum 1560
Range H/C 1600

Minimum 0
1400
Maximum 886
Range C/L 1200

Minimum 8
1000
Maximum 1549
Pips Movement

Average 515.2033 800

600

400

200

0
Ma 0 0

Ma 01

Ma 02

Ma 03

Ma 04

Ma 0 5

Ma 06

Ma 0 7

Ma 08

Ma 09

0
Ja 0

Ja 1

Ja 2

Ja 3

Ja 4

Ja 5

Ja 6

Ja 7

Ja 8

Ja 9
Se 0

Se 1

Se 2

Se 3

Se 4

Se 5

Se 6

Se 7

Se 08

Se 09

n-1
p-0
p-0

p-0

p-0

p-0

p-0

p-0

p-0

p-0

p-0
y-0

y-0

y-0

y-0
y-0

y-0

y-0

y-0
n-

n-

n-
n-

n-

n-

n-

n-

n-

n-
y-

y-
Ja

P e r io d

20
Quarterly Analysis

Range Range Range Magnet

Period Close High Low H/L H/C C/L Point
Jan-Mar 00 102.28 111.75 101.42 1033 106.585
Apr-Jun 00 105.86 110.05 102 805 777 28 106.025
Jul-Sep 00 108.13 109.8 104.76 504 394 110 107.28
Oct-Dec 00 114.69 115.11 106.68 843 698 145 110.895
Jan-Mar 01 126.15 126.3 113.55 1275 1161 114 119.925
Apr-Jun 01 124.79 126.85 118.3 855 70 785 122.575
Jul-Sep 01 119.48 126.05 115.8 1025 126 899 120.925
Oct-Dec 01 131.56 132 119.4 1260 1252 8 125.7
Jan-Mar 02 132.67 135.15 126.32 883 359 524 130.735
Apr-Jun 02 119.47 133.86 118.36 1550 119 1431 126.11
Jul-Sep 02 121.77 124.23 115.5 873 476 397 119.865
Oct-Dec 02 118.71 125.73 118.27 746 396 350 122
Jan-Mar 03 118 121.87 116.3 557 316 241 119.085
Apr-Jun 03 119.75 121.15 115.1 605 315 290 118.125
Jul-Sep 03 111.4 120.68 110.13 1055 93 962 115.405
Oct-Dec 03 107.35 111.58 106.73 485 18 467 109.155
Jan-Mar 04 104.37 112.31 103.46 885 496 389 107.885
Apr-Jun 04 108.89 114.9 103.47 1143 1053 90 109.185
Jul-Sep 04 110.01 112.46 107.58 488 357 131 110.02
Oct-Dec 04 102.5 111.45 101.83 962 144 818 106.64
Jan-Mar 05 107.19 107.7 101.67 603 520 83 104.685
Apr-Jun 05 110.82 110.98 104.2 678 379 299 107.59
Jul-Sep 05 113.62 113.73 108.75 498 291 207 111.24
Oct-Dec 05 117.95 121.47 113.02 845 785 60 117.245
Jan-Mar 06 117.72 119.4 113.41 599 145 454 116.405
Apr-Jun 06 114.46 118.9 108.97 993 118 875 113.935
Jul-Sep 06 118.1 118.29 113.45 484 383 101 115.87
Oct-Dec 06 119.07 119.88 114.43 545 178 367 117.155
Jan-Mar 07 117.78 122.2 115.16 704 313 391 118.68
Apr-Jun 07 123.04 124.14 117.4 674 636 38 120.77
Jul-Sep 07 114.74 123.67 111.6 1207 63 1144 117.635
Oct-Dec 07 111.77 117.95 107.23 1072 321 751 112.59
Jan-Mar 08 99.73 112.1 95.77 1633 33 1600 103.935
Apr-Jun 08 106.05 108.59 99.6 899 886 13 104.095
Jul-Sep 08 106.43 110.66 103.5 716 461 255 107.08
Oct-Dec 08 90.8 106.54 87.15 1939 11 1928 96.845
Jan-Mar 09 97.08 99.68 87.11 1257 888 369 93.395
Apr-Jun 09 96.35 101.44 93.87 757 436 321 97.655
Jul-Sep 09 89.77 97.78 88.26 952 143 809 93.02
Oct-Dec 09 93.08 93.14 84.83 831 337 494 88.985
Jan-Mar 10 93.48 93.76 88.15 561 68 493 90.955

21
 Pips Difference
Jan

Minimum
Minimum
Minimum

Maximum
Maximum
Maximum

-M

0
Average

500
ar 0

1000
1500
2000
2500
Jul 0
-Se
p
Jan 00 Range C/L
Range H/L

Range H/C

-Ma
r
Jul 0 1
-Se
p
884.8537
1928
1252
1939
484

8
11

Jan 01
-Ma
r0
Jul 2
-Se
p
Jan 02
-M
ar 0
Jul 3
-Se
p
Jan 03
-Ma
r
Jul 0 4
-Se
p
Jan 04
-Ma
r0
Jul 5
-Se
p
Jan 05

P e rio d s
-M
ar 0
Jul 6
-Se
p
Jan 06
-Ma
r
Jul 0 7
H ig h - L o w R a n g e Q u a r te r ly

-Se
p
Jan 07
-M
ar 0
Jul 8
-Se
p
Jan 08
-Ma
r0
Jul 9
-Se
p
Jan 09
-Ma
r1
0

22
Semiannually Analysis

Range Range Range Magnet

Period Close High Low H/L H/C C/L Point
Jan-Jun 00 105.86 111.75 101.42 1033 106.585
Jul -Dec 00 114.69 115.11 104.76 1035 925 110 109.935
Jan-Jun 01 124.79 126.85 113.55 1330 1216 114 120.2
Jul -Dec 01 131.56 132 115.8 1620 721 899 123.9
Jan-Jun 02 119.47 135.15 118.36 1679 359 1320 126.755
Jul -Dec 02 118.71 125.73 115.5 1023 626 397 120.615
Jan-Jun 03 119.75 121.87 115.1 677 316 361 118.485
Jul -Dec 03 107.35 120.68 106.73 1395 93 1302 113.705
Jan-Jun 04 108.89 114.9 103.46 1144 755 389 109.18
Jul -Dec 04 102.5 112.46 101.83 1063 357 706 107.145
Jan-Jun 05 110.82 110.98 101.67 931 848 83 106.325
Jul -Dec 05 117.95 121.47 108.75 1272 1065 207 115.11
Jan-Jun 06 114.46 119.4 108.97 1043 145 898 114.185
Jul -Dec 06 119.07 119.88 113.45 643 542 101 116.665
Jan-Jun 07 123.04 124.14 115.16 898 507 391 119.65
Jul -Dec 07 111.77 123.67 107.23 1644 63 1581 115.45
Jan-Jun 08 106.05 112.1 95.77 1633 33 1600 103.935
Jul -Dec 08 90.8 110.66 87.15 2351 461 1890 98.905
Jan-Jun 09 96.35 101.44 87.11 1433 1064 369 94.275
Jul -Dec 09 93.08 97.78 84.83 1295 143 1152 91.305
H ig h -L o w R a n g e S e m ia n n u a lly
Range H/L 2500
Minimum 643 2351

Maximum 2351
Range H/C 2000

Minimum 33 1679
1 63 3
Maximum 1216 1500
1620 1644
14 3 3
Range C/L 1 3 95
Pips Difference

13 3 0
12 7 2
Minimum 83 1144
1295

1035 10 6 3 1043
Maximum 1890 1000
1033
1023
931 898
Average 1257.1
677 643
500

0
J a n - J u nJ u l - D e cJa n - Ju nJu l - D e cJa n - Ju nJu l - D e cJ a n - J u nJ u l - D e cJa n - Ju nJ u l - D e cJ a n - J u nJ u l - De cJa n - J u nJu l - D e cJ a n - Ju nJ u l - D e cJ a n - Ju nJu l - D e cJ a n - J u nJ u l - D e c
00 00 01 01 02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09

P e ri o d

23
Annually Analysis

Range Range Range Magnet

Period Close High Low H/L H/C C/L Point
Jan-Dec 00 114.69 115.11 101.42 1369 108.265
Jan-Dec 01 131.56 132 113.55 1845 1731 114 122.775
Jan-Dec 02 118.71 135.15 115.5 1965 359 1606 125.325
Jan-Dec 03 107.35 121.87 106.73 1514 316 1198 114.3
Jan-Dec 04 102.5 114.9 101.83 1307 755 552 108.365
Jan-Dec 05 117.95 121.47 101.67 1980 1897 83 111.57
Jan-Dec 06 119.07 119.88 108.97 1091 193 898 114.425
Jan-Dec 07 111.77 124.14 107.23 1691 507 1184 115.685
Jan-Dec 08 90.8 112.1 87.15 2495 33 2462 99.625
Jan-Dec 09 93.08 101.44 84.83 1661 1064 597 93.135

Range H/L H ig h - L o w R a n g e A n n u a lly

Minimum 1091
Maximum 2495 3000
Range H/C
Minimum 33
Maximum 1897
2500 2495
Range C/L
Minimum 83
Maximum 2462
Average 1691.8 2000 1965 1980
1845
1691 1661
1500 1514
Pips Difference

1369
1307

1091
1000

500

0
J a n - D e c J0 a0 n - D e c J0 a1 n - D e c J0 a2 n - D e c J0 a3 n - D e c J0 a4 n - D e c J0 a5 n - D e c J0 a6 n - D e c J0 a7n - D e c J0 a8 n - D e c 0 9
P e rio d s

24
Conclusion:

For long term analysis, USDJPY is in bullish movement from 84.82, further rise
towards 100.00 could be seen in next several weeks.

USD/JPY broke above 93.75 (Jan 7 high), suggesting that the longer term
uptrend from 84.82 (Nov 27, 2009 low) has resumed. Further rally is still in favor
and next target would be at 95.00-96.00 area. Initial support is now at 93.45
followed by 93.25, and key support is at 92.12, as long as this level holds,
uptrend from 89.76 could be expected to continue.

USD/JPY broke below the rising price channel on 4-hour chart, suggesting
lengthier consolidation of uptrend is underway. Range trading between 93.00 and
94.68 would more likely be seen in next several days. Another rise towards 96.00
is still possible after consolidation and a break of 94.68 will signal resumption of
uptrend.

25
 Recommendation

Japan is the 2nd largest economy of the world after the USA, and it is major
exporter of the world. Due to this Japan always need to weaken their currency
because of to get the maximum exchequer from the outside.

Currently Japan’s exports are decreased due to international financial turmoil and
increase the value in the Japanese Yen. There fore Japan floating there 220tr
Yen ($222bn) into the financial market with a minimum interest rate. After that
currencies value is decrease into the market, now I further suggest to the Japan
if they want to decrease there value and control on deflation they should float
more money into the market as peoples purchasing power will increase, and
export will increase.

Overall in Japan business environment is excellent and the currency of Japan is

strongest in the world.

26