JPY

USD/JPY is in the area of their minimums. Despite a strong decline in prices, it is expected that soon decline trend will change, which is a technical correction after a long decline.

The authorities of the country are in no hurry to raise interest rates, arguing about hesitant development of the economy, so the weakness of JPY will provide support for a long time to Japanese producers and create pressure on their currencies, but after the completion of a recession USD will begin to strengthen rapidly, which may cause correction of pair.

Approximate area which USD/JPY could strengthen to is 111.80-113.30. It is expected that turn of the trend may start as soon as possible (maximum in a month or two), but the Japanese currency trading, which is the most unpredictable among major currencies, is very dangerous, so is not advisable to open positions if they attended by a high risk.

This week there are no statistical data that can change the basic trend. The focus of the market will be on data on balance of payments of Japan and the United States as well as the statements of officials, who will demand urgent action to stabilize the situation after reaching the level of 1.54 this week.

the source of info: PoltekFX Analytics