Japan’s export decline starts showing more concerns among the currency strategists working for Citigroup. The weakness of the Japanese economy takes place amid negative economic tendencies in the USA, Asia, Europe.
The experts expect the Japanese GDP to shrink in Q3 2012, which may force the Bank of Japan into stimulating the domestic economy. If this is the case, the BOJ will probably start acting in October, thereby affecting the national currency.
Forex.
According to , the Japanese Yen keeps weakening against the US Dollar. The experts report that USDJPY is forming an upswing represented by wave А/В of level H4.
A further rally will probably encounter resistance around 79.01, 79.09, 79.30. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 78.29 (as shown below).
