According to the recent survey conducted by Bloomberg, the Japanese economy is expected to gain 0.4% in Q4 2012. If the experts’ opinion is confirmed by the actual data, this will indicate that the Japanese economy has finally come out of the 3rd recession over the last 5 years.
The economists interviewed by Bloomberg assume that the economic growth was mainly caused by higher domestic consumption.
By the way, Citigroup and JPMorgan have recently reconsidered their forecast for Japan’s economic prospects as well.
According to Meiji Yasuda Life Insurance Co, the Japanese economy will continue growing in the near future. However, the pace of this growth will probably slow down a little, thereby forcing the Japanese government to stimulate domestic consumption through another round o monetary easing.
Itochu and Deutsche Bank expect the Japanese economy to decline in 2014. On the contrary, JPMorgan experts assume that the Japanese economy will start recovering only in early 2014.
Forex.
The chart below, courtesy of , reflects the current state of affairs in the market of USDJPY. The currency pair is retracing.
A break below the local low (92.96) will give way to 92.35. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 93.70 (as shown below).
