summary: 2nd week the Central Bank Governor Shirakawa said Japan economy after earthquake "very serious", suggesting that the Central Bank will maintain the ultra-loose monetary policy stance, collapse of the yen crashed, made nearly three weeks since the largest decline against the dollar.
Tuesday (17th), Japan's Central Bank (Bank of Japan) Governor Shirakawa (Masaaki Shirakawa) says Japan economy "very serious", the market will become more relaxed monetary policy is expected, so as to depress the yen against the dollar made nearly three weeks since the largest decline.
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Chatterjee:" in terms of monetary policy, the action to stimulate economic growth in the short term is not very clear. "
Shirakawa said on Tuesday that because of the earthquake damage in March, Japan economic situation was critical, suggesting that the Central Bank will maintain the ultra-loose monetary policy stance.
he reiterated that Japan's Central Bank will do everything possible to fight deflation, but added that prices increased by strong economic growth is needed to promote, emphasizing the implementation of policies to stimulate Japan growth potential need.
in addition, Japan's Finance Minister, Noda Kai Yan-Duan also said that fighting deflation is the foremost task of the Government, even if the Government is trying to control the damage inflicted by the earthquake.
the dollar/Yen at present than last session 0.8%, trading near 81.45, intraday high rise 1.2%, to 81.76, this gains the largest since April 27.
however, entering the time in New York, stocks fell in Europe and America, combined with long term us debt hit a 2011 high and depress yields, high fall of the dollar/Yen two weeks.
Windsor Brokers Ltd. Slobodan Drvenica, an analyst said: "the dollar/Yen below initial support at 81.3, watch 81 after dropping below, and then was 80.7. "
Switzerland full meeting (MIG Bank) technical analyst Ron William said dollar/yen on Friday (13th) low 80.36 rebounded, and breakthrough 81.35 resistance today, the exchange rate is expected to further gains.
William said above the dollar/Yen is expected to exceed high 82 since the G7 joint intervention, and then the earthquake highs since 83.3, further on April 7 high 85.5.
