Market participants are divided over the prospects of the Japanese Yen. After the currency strengthened by 23% in 2012, Barclays, Morgan Stanley and RBS expect USDJPY to trade around 100.00 in late 2013.
According to Scotiabank, the current rally is closely connected with the situation in the stock market. It is so strong that it is useless to anticipate its end in the near future. The bank expects a rally up to 95 and 100, with a following decline.
Even the HSBC, which is famous for its yen purchases, has recently revised its forecast for USDJPY. The experts say that the Bank of Japan’s ultra easy monetary policy, the Japanese Yen may weaken (even though the probability is below 50%).
Forex.
The chart below, courtesy of , reflects the current state of affairs in the market of USDJPY.
The closest levels of resistance are 95.94, 97.96. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 77.42 (as shown below).
