The Japanese Yen weakened after the IMF’s statement over the near-future of the Japanese Yen. The IMF experts say the Japanese yen exchange rate is moderately overvalued. They say the Japanese authorities should let the market set the real USDJPY exchange rate.
However, they say that any currency intervention will be justified by lower volatility.
According to Takatoshi Kato, ex-Vice Managing Director of the IMF, the Bank of Japan’s currency interventions will be justifiable when the JPY reaches the recent highs (lows for USDJPY).
According to , the Japanese Yen is still strengthening against the US Dollar. USDJPY has finished forming wave В of Н4.
A break above the local high at 78.52 will indicate the forming of wave А/В of level Н16. The closest levels of resistance are located at 78.67 and around the top of the MF sloping channel. Alternatively, a break below 77.91 will elongate the current bullish move through the “Hound of the Baskervilles” pattern by Elder/MF. If this is the case, the price may meet support around the 77.65 low.
