Vlad Demochko
The currency strategists working for Wells Fargo feel neutral about the short-term dynamics of the Japanese Yen. However, they expect a decline in mid-term perspective.
Still, the Japanese currency can get some support from some random factors in the short run. If to look several weeks ahead, speculators may well start closing their short-term trades.
Moreover, analysts say the Japanese economy is in recession amid monetary easing implemented by the Bank of Japan, which is another bearish factor for the national currency.
Another bearish factor to consider is the forthcoming parliamentary election in Japan. It is scheduled for mid December 2012. According to preliminary surveys, the opposing party enjoys bigger support.
Wells Fargo expects USDJPY to resume its rally in the long run: 79.00 in 3 months, 80.00 in 6 months and 82.00 in 12 months.
Forex.
According to , the Japanese Yen keeps weakening against the US Dollar. The experts report that USDJPY is forming wave А(С)/С inside a bigger-scale upswing represented by wave А/В of level Weekly.
A further rally (above 81.57) will probably encounter resistance around 82.01. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 80.88 (as shown below).
Vlad Demochko
