To the extent central banks will be unable or disinclined to adjust rates, I project significant volatility increases overall. Most directly in the various financial sectors and particularly in the currencies, we can expect widening bands of volatility. As we move through 2015, I expect great opportunities in forex.
Japan’s debt crisis in particular, and the BOJ’s efforts to fend off insolvency will put considerable pressure on already deflated Yen values. Recent lows in the USD/JPY quote of 121.84,have marginally retraced to the current level of about 115.5. Timing models
suggest a resumption of the decline is at hand. An initial target price is around the 128.00 level. Longer term( by the third qtr. of 2015) we could see levels of between 147.00 and 150.00.
Complementing Japan’s macroeconomic woes are a set of bleak technicals, which together should, I expect stoke volatility in the broader currency sector.
Tune into my next webinar, this Thursday (12/18/14) at 10:00 am PST, where I’ll expound on some of the specific factors, both fundamental and technical, which indicate lucrative trading opportunities for the new year.
