NEWS / Foreign Exchange

Forecast for the USDJPY trading during April-May 2007

The yen remain weak against the dollar in spite the negative data forthe dollar. The situation in the Japan economy is still in doubt whether Bankof Japan will be able to hike the interest rates again or will keep the levelof 0.5% for the whole 2007. The traders prefer to sell yens in expecting levelsabove 120. The 4-years high of 122.17 will happen again on the market latterthis month or latest in May 2007. The chances for rate hike are minimal and wepredict that the interest rates will hold at 0.5% for the whole 2007. Currentlythe key support level is forming at 117.21 a key level that should be using foropening long positions.