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JPY The weakness of USD has led to a decline in USD | JPY below 100 yen per $ 1. So cheap American currency have not been since 1913. It is obviously the current mark is not provided with fundamental data. On the one hand, opening positions on Bid is very risky, as there is a high probability of entering the market at minimums, but it is too early for Ask because the price may fall further. It is expected that the price against the background of retracement will return to the area of 112 figure (50% of the descending trend), but this corrective movement is possible only in case of strengthening the American currency. By analyzing the Japanese economy, it may be noted that the interest rate will be at the minimum points most likely before the third quarter of this year, when it has become known effects of the recession in the United States. Inflationary pressures in Japan show no signs of accelerating, despite the fact that industrial production is growing steadily. The problems in the Japanese economy can arise if only the American currency will be near the current mark for a long time. Then the import of the United States will decline and taking into consideration that the United States is a major consumer of Japanese goods, we can expect it.In the short term attentions by investors will be attracted by comments of politicians. There are no important data on the Japanese economy this week, so all attention will be paid to the comments and actions of the Fed. At the Asian session Fukui comments will be of great importance that will be followed after the pair USD | JPY sets new minimums.
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