USD/JPY (102.72) â€“ Weekly Forecast
Weekly forecast levels: 100.40/104.90
Trend for the week â€“ Neutral/Downward
Weekly Strategy: Bank of Japan would not allow the yen to gain so fast against the dollar. The bank will continue to hold the interest rates at 0.5% for longer time and we are not predicting interest rates rising in near-term. At the same time for the Japan economy the export is very important and high yen is not helpful for the Japan crisis economy. Although that the dollar weakness will continue the yen will remain under the control of Bank of Japan and are not expecting strong yen gains. The chances for yen break below 100 against the dollar this week are minimal.