Societe Generale Expects Further Yen Weakening

The Japanese Yen keeps weakening despite the fact that the recent actions taken by the Bank of Japan seem to have disappointed investors. Nevertheless, the central bank’s obligations to eliminate deflation may have a major effect in the long run. This is what the experts working for Societe Generale think on the matter.

According to Keith Jukens, the head of FX Bank, the decision to raise the inflation target up to 2% looks pointless as the previous target (1%) is still unbroken. Still, he says such a decision makes investors more confident about the BOJ’s bond purchase plan.  He also assumes that the Fed’s balance wont; increase in 2013, which means that USDJPY has enough potential to reach 100.00.

According to , the Japanese Yen keeps weakening against the US Dollar. The experts report that USDJPY is forming a big-scale upswing represented by wave C of level Weekly.

A further rally will probably encounter resistance around 91.93, 92.39, 92.77. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 88.05 (as shown below).