Wednesday, April 29, 2009

BNP Paribas count on continued fall of the dollar / yen

After yesterday's fall of the dollar / yen managed to recover some losses and now holds around Y96.66, and BNP Paribas currency strategists do not exclude the possibility of new attempts at growth in the near future. However, they are reminded that the couple had recently Breaks the trend line and return to it would probably be perceived the market as an opportunity for the resumption of sales. The bank also expects that, while the fall in equity markets has been favorable for the Japanese currency, even when they are stabilized, yen will continue to be in demand, given the weakening of the impact of changes in appetite for risk to the currency, which is now increasingly dependent on investment flow of real bills. At BNP Paribas believes that the Japanese currency, there is still potential for growth in the short and medium term, and expect support for resumption of testing in the area of Y95.95, while break below would signal the continuation of motion in the direction of Y92.40, which will contribute to improving interest of Japanese investors in the domestic securities.

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