The currency strategists of Barclays Capital assume that USDJPY may keep consolidating. However, they report about the excessive amount of sell orders. So, the currency pair may continue its downtrend as well. A break below 79.60 will confirm the bears’ serious intensions. However, the currency pair is still above 78.65/20. Nevertheless, the strategists say that bullish prospects are more attractive for investors.
The Barclays Capital strategists have left their forecast for USDJPY unchanged : $84.00 by the end of current quarter and $89.00 by the end of 2012.
At the same time the currency strategists at Bank of Tokyo Mitsubishi-UFJ are concerned about the results of the Greek elections, thus underlying that the threats of an uncontrolled Greek default will destabilize financial markets, simultaneously providing extra support for the Japanese Yen.
According to , the Japanese Yen continues strengthening against the US Dollar. USDJPY has finished forming wave А(С)/С inside the bearish wave А/В of wave level Daily3. On breaking below 79.42 may decline down to 78.85/83, 78.56, 78.02/77.94. The current downswing will be over if the price breaks above the top of the MF sloping channel and pivot 80.54 (as shown below):
