According to analyst estimates, the Bank of Japan is probably going to downgrade its forecast for the Japanese economy in the near future. At the same time, the Japanese government has a difficulty attracting corporate investments as well as distributing the profits gained by Japanese corporations.
At the same time, it should be noted that the Japanese government already did the same step in the latest report. According to it, the Japanese economy is at the stage of moderate recovery with some sectors showing weakness. The thing is the government views the slowdown in emerging economies as a deterrent to Japanese export and production.
On top of that, the government feels less optimistic when evaluating specific sectors of the Japanese economy. The export and manufacturing production are going down while the Bank of Japan sees them as relatively stable.
At the same time, Mr. Kuroda, President of the Bank of Japan, reports that the current rate of inflation in japan is at 0%. While the Japanese economy is recovering at a moderate pace, Mr. Kuroda says the Bank of Japan is going to continue the QE until the inflation rate hits the 2% target. According to him, such measures are necessary to back the stability of the financial system.
FOREX
Meanwhile, the Japanese Yen keeps on showing signs of weakness. USDJY is rallying within the scope of wave A/B of level H4 or higher, Masterforex-V Academy reports. More specifically, the price is building wave 3/C inside the bullish move.
Resistance levels – Fibo levels 120.03, 120.26, 120.48, 120.64 and MF pivot 120.34
Support levels – MF pivot 119.40 and the bottom of the ascending MF sloping channel. Once the support levels are broken, the rally is going to be completed.
