FOREX NEWS. Last week USDJPY saw a significant decline as the level of 85.50 restrained the upward wave, which supported the Japanese Yen. The Fed Reserve showed that it wouldn’t probably raise the interest rate this time, which supported the Japanese Yen as well.
Last week Ben Bernanke, Fed Res Chairman, said that the inflation growth would be temporary as the consumer price growth was slowing down. Some other Fed Res members supported the Chairman, meaning that there was no point in voting for increasing the interest rates.
However another Richter magnitude 7 earthquake frightened investors, making them concerned about the nuclear situation in Japan.
The data on the US housing market is scheduled for next week. The index value is expected to stay unchanged.
Long-term layout:
USDJPY is seeing a series of correction waves. The first correction wave is nearly over so one should expect the price to reverse in the short run, with further movement up to 84,40. A significant level for the current downward level is 82,80.
The current situation:
We expect the price to make a slight upward movement followed by a decline, completing the entire downward wave series.
The Department of DFWA,
