The Bank of Japan has recently analyzed the current economic situation in the country to conclude that it hasn’t changed much over the recent months. The level of economic activity is at the same level while the national export and production look weak, being in correlation with the global economic slowdown.
However, the report says that the domestic demand stays stable mainly due to the recovery after last year’s natural disasters and Fukushima meltdown. Japanese corporations invest more due to higher profits.
Forex.
According to , the Japanese Yen keeps retracing from the bullish trend against the US Dollar. The experts report that USDJPY has finished forming wave А/В of level Н4.
A break below the local low at 78.07 will start another bearish move represented by wave A/B of level H8. If this is the case, the closest levels of support will be located at 77.97, 77.88, 77.77/76.
Alternatively, a break above the 78.86 high will suggest the forming of wave а(С) or shortened С. In this case, the price may head for new heights and encounter resistance around 78.99 and 79.20.
