According to analyst estimates, the Bank of Japan is probably going to downgrade its forecast for the Japanese economy in the near future. At the same time, the Japanese government has a difficulty attracting corporate investments as well as distributing the profits gained by Japanese corporations.
At the same time, it should be noted that the Japanese government already did the same step in the latest report. According to it, the Japanese economy is at the stage of moderate recovery with some sectors showing weakness. The thing is the government views the slowdown in emerging economies as a deterrent to Japanese export and production.
On top of that, the government feels less optimistic when evaluating specific sectors of the Japanese economy. The export and manufacturing production are going down while the Bank of Japan sees them as relatively stable.
They say Prime Minister Abe is planning to address BlackRock, Japan’s biggest investment company, in order to ask for help in terms of attracting corporate investments and distributing corporate profits.
FOREX
In the meantime, the Japanese Yen is still retracing from the long-term rally against the U.S. Dollar, Masterforex-V Academy reports. Specifically, USDJPY is developing wave A/B of level Daily.
For now the price is moving within the scope of a smaller-scale wave – b( C ). A break below the 118.05 low will resume the downward move. The closest levels of support are 117.69, 117.47, 117.09. At the same time, once the price overcomes the descending MF sloping channel and MF pivot 120.34, the entire move will be completed.
