The G7’s idea of implementing a series of currency interventions in order to curb the volatility of the Forex market was the major factor contributing to the overall weakening of the Japanese Yen.
Nevertheless, the currency strategists at Bank of America assume that USDJPY may continue its downswing right down to 75.56.
According to Mr. Carry, chief currency strategists at the bank’s New York office, last week the price consolidated below the Ishimoku Cloud, which is a strong bearish signal. The US bond market is currently retracing. However, the uptrend still exists. The bank’s strategists are sure that the downtrend of USDJPY will resume and hit 76.25 and 75.56.
According to , USDJPY is recovering against the major downtrend. There are signs that the bearish movement of USDJPY is about to be completed. A further rally will encounter resistance at 79.63. If the price overcomes the resistance, this will confirm the bullish scenario. Alternatively, a break and consolidation below 77.65 will indicate the forming of wave А(С)/С inside the current downswing. If this is the case, 76.57 and 76.12 will become the closest major levels of support.
