The Asian session has started today on new gains while the Japanese USDJPY is trading around 89 level after it has reached 89.33 which has not been seen since the end June 2010 before it.
Nikkei 225 is trading now at 10780 supported by this current Japanese yen weakness which adds competitiveness to its exporters companies and also by the bullish closing of the US session yesterday which brought back Dow Jones to be traded over last week closing getting over this week loses to close it at 13471 gaining 80 points.
As The Japanese stocks have managed to react positively again to the prime minister Shinzo Abe who has announced new $116 billion governmental announced plan for raising the Japanese GDP by 2% and this plan comes after he had warned of looking into BOJ legislation, if it is not to put an inflation target at 2% yearly and work seriously for reaching it fighting the persisting deflation in Japan as the Japanese national consumer prices index is still in the negative territory since last June despite targeting 1% over the short term and 2% over the long term yearly by BOJ last February and also in spite of its efforts of stimulating the economy by raising its assets purchasing plan to reach 101 by the end of last year showing to the markets that there can be a further leeway of lower Japanese yen to come by God’s will.
After USDJPY has retraced to 86.82 last Tuesday, it has managed to rise again getting over its previous high at 88.39 to be ahead its main psychological level at 90 which can open the way by God’s will, for higher resisting level at 92.87 which can be followed by 94.97 which has been its formed top on the 4th of may 2010 while easing back from here can be met by supporting levels at 86.82 86.53, 85.46, 85, 83.85, 83.23, 82.1, 81.68, 80.87, 80 psychological level, 79.06, 77.93 and 77.10 whereas it’s formed its bottom on 13th September to the current levels.
FX Market Strategist
Walid Salah El Din
Mob: +20 12 2465 9143
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