Forex news, USDJPY. Dynamics of Japanese index Tankan, calculated by the Bank of Japan on a quarterly basis, shows lasting recovery of national economy. Characterizing business activity, it has risen to -1 from -4 during the first quarter.
Managers of large manufacturing companies expect the economic situation to improve, thus planning to increase the volume of direct investment by 6.2% for current financial year. They are optimistic due to strong demand from developing markets and recovery works, as stated by Tatsushi Shikano, head economist of Mitsubishi UFJ Morgan Stanley Securities. “Despite problems, resulting from high rate of Japanese Yen, Tankan shows that economy is recovering according to predictions of the Bank of Japan,” he says.
Next meeting of the Bank of Japan is scheduled for July 11, and it will last for 2 days. Positive macroeconomic data bring hope for monetary policy to remain unchanged. In general, economists suppose that Central Bank may abstain from any actions till the end of the year provided that appreciation of Yen does not require urgent interference of Japanese government into monetary regulation.
JPY keeps forming correction to long-term bullish trend, directed at weakening USD. Experts of Masterforex-V Trading System predict the end of H4 bearish wave А/В. When high 79.98 is broken, sub-wave А(С)/С will be former within Н16 bullish wave А/В; resistance is provided by Fibonacci points 80.05, 80.27, 80.44, and high 80.62. When low 79.30 is broken, bearish wave А(С) or H16 reduced wave С will be formed; its closest resistance will be provided by low 79.13 and pivot MF 78.79.
