USDJPY Is Above 96.00 - 12.3.2013

Japanese yen has set a new 3.5-year low against the US dollar. The pair has grown up in Asian trading session to 96.70, on the rumors that Haruhiko Kuroda, who may launch measures for the growth stimulation before the next Bank Of Japan meeting scheduled on April 3-4, after his approval by the Parliament. In addition, the February central bank meeting minutes published today showed that some of its members are considering the possibility of purchasing bonds with a longer maturity than it is provided in the current asset purchasing program. First of all, it is about the 5-year bonds. The more of it, Kikuo Iwata, claiming the CB chairman’s deputy post, speaking in the Parliament today, confirmed that the purchasing of long-term government bonds would help the central bank to achieve the inflation target at 2%. Iwata also noted that the maximum employment provision is to be assigned to the tasks of the central bank. Compared to September values the yen fell by almost 25% vs. the US dollar. Our next targets are at 98.00 and 100.00. In a longer term perspective, in our point of view, the pair is able to achieve 110.00, however, we do not exclude the possibility of serious corrections.