The current weakening of the Japanese Yen was fairly predictable for investors. However, after USDJPY exceeded the 100 limit, experts got divided over the prospects of the currency pair.
In particular, Nomura experts are expecting the Japanese Yen to keep weakening (i.e. a further rally of USDJPY). They expect the price to hit 104.00 within a few weeks. At the same time, they do not deny the possibility of USDJPY hitting even 105. However, they doubt that the currency pair may exceed the limit this quarter.
At the same time, Morgan Stanley experts say that the 101 level is a major level of resistance. Therefore, it may well become a reversal point since they price is expected to rebound from it to start a downswing to 94.00/92.00. The recommended stop-loss level is 103.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of USDJPY. The currency pair keeps rallying since the Japanese yen is weakening against the US Dollar.
A further rally will probably encounter resistance around 104.06, 104.50. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 97.00 (as shown below).
