The consequences of the latest Fed meeting and the “Lehman” scenario in China make investors ponder on the following question: Will the new “Abenomics” policy make positive changes to the Japanese economy.
Investors worldwide are watching the steps taken by the Japanese authorities. They hope to see more fundamental structural reforms instead of monetary easing aimed at fighting deflation.
The statements made by Taro Aso, Minister of Finance, looks especially interesting. In particular, he promises to introduce a plan aimed at reforming the tax system later this summer.
Forex
According to Masterforex-V Academy, the Japanese Yen keeps weakening against the US Dollar. The experts report that USDJPY is forming wave A/B of wave level H8 or higher.
A further rally (above 98.69) will probably encounter resistance around 98.75, 99.85/93 and may be even 99.27. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 96.86 (as shown below). Other levels of support include 96.81/74, 96.29/23.
