FXstreet.com (Buenos Aires) - After Japanese yen appreciation sent the pair to its lowest level in 14 years at 84.79 in past November, we are closing this year close to the 93.00 level.
According to ecPulse.com, Japan's economy was affected deeply by the global financial crisis, determining Japan's central bank to implement quantitative easing policies since the beginning of 2009 in order to provide enough liquidity which could help the economy to start functioning again.
At this point, they forecast: Japan's future will depend primarily on the central bank and government's ability to achieve the balance between supporting growth rates gradually and stabilize price levels, since the second largest economy in the world faces increased deflationary risk since the third quarter of 2009.
From a technical perspective, ecPulse.com team sees that the 95.00 area is very critical in 2010 and from here we see that the downside trading will generally control the year's trading. We might witness upside corrections alongside heightened volatility yet all in all trading below 95.00 will keep the bearish wave count valid while the long term outlook is also bearish as far as trading is steady below 101.60.