Daisuke Karakama, an economist at Mizuho Corporate, says USDJPY may well decline down 80.00 within 2 weeks.
Despite a huge number of short trades on the Japanese Yen, most of them may be closed in the short run (for example, on positive US employment stats), thus causing the strengthening of the Japanese currency.
The analyst expressed his disappointment over Friday’s Us employment stats. Amid higher US unemployment rate (8.2% - 3-year high), Mr. Karakama anticipates more pressure on the US Dollar, which will result in downtrend of USDJPY.
According to , the Japanese yen keeps strengthening against the US Dollar. At this point, USDJPY is forming sub-wave 4 or В(С) inside the bearish wave С(С) Н8.
A break above 81.82 will cancel the wave-4 scenario, while a break above 82.35 will suggest the forming of a bigger-scale upswing - wave А/В. A break below 81.19 will resume the current bearish wave, thus forming sub-wave 5 or wave А in the “Hound of the Baskervilles” pattern by Elder/MF. The closest levels of support will be 81.05 and 80.57.
