My Forecast

02:20GMT GBPJPY looking for some reversal soon.

01:45GMT Good Morning Friends, US data release is the key for direction/recovery. As predicted; yesterday's small reversal was a "faking" trend - that was a trap for sell entries. We may see a "range-bound" triangle formation in most of our pairs till the data release. At this moment all our pairs are looking down for a small drop. Note that we are seeing some historic moments (more than a generation) in JPYs so predictions & patterns from anybody is just instincts and should be treated as same.
News about GBP
Britain faces the risk of sliding back into recession and the central bank's growth forecast for this year and next may be too optimistic, new Bank of England policymaker Martin Weale said in an interview on Tuesday."I think it would be foolish to say that there's no risk of that," Weale told the Times newspaper, noting that the Bank's latest economic forecasts put "a significant chance on the economy contracting over a four-quarter period.""I find it easier to see why growth should come in a bit below (the forecast) than I do to see why inflation should come in above the forecast," Weale said."I am very comfortable with the view that there is slack in the economy, that unemployment is likely to rise further, and the way things are developing I find it hard to see that there are unusually substantial risks to inflation," he said.
He said dangers ahead include a renewed hike in unemployment as well as declining house prices and another banking crisis."That could be a sovereign debt crisis or it could be a new liquidity crisis in the private sector," he told the paper."The whole of the lesson of not only the recent crisis, but earlier ones, is that you have periods of calm and then things bubble up again," he said.Weale said tough fiscal tightening is removing demand from the economy, though it is not a likely trigger for recession."Another factor here is that consumer demand may well be rather less buoyant than we have been used to," Weale said. "There is a risk that consumer saving will be quite a lot higher than people had hoped and there is a risk that investment may pick up less than people hope and find that you do have the problem that exports haven't been doing as well as one might hoped."
News about JPY
The dollar sank as deep as 83.60 yen at one point, before crawling back to 84.25 on the Nikkei report. The euro fell as much as 2.2 percent to 105.44 yen, before steadying at 106.43. Finance Minister Yoshihiko Noda told reporters he would respond appropriately as needed, an expression he has not used so far in his campaign to talk the currency down."The dollar went to 83 yen, so the chance of intervention has increased, but it would take more than intervention," said Kiichi Murashima, economist at Citigroup Global Markets in Tokyo. "It has to be coupled with easing by the BOJ to have any impact."The finance ministry will consider intervening unilaterally if the Japanese currency rises at a pace of several yen against the dollar in a single day, the Nikkei reported in its Wednesday morning edition.Annual growth in Japan's exports slowed less than expected in July, finance ministry data showed on Wednesday, due to a pick up in shipments to the United States in Europe.Yet economists still expect export growth to slow in coming months due to signs the global economic recovery is faltering, and a rising yen only adds to worry as it makes Japan's products more expensive overseas.Tokyo will probably have difficulty convincing its U.S. and European counterparts to jointly step into the markets, given that they see little need to reverse the weakening of their currencies that benefit exports.But solo intervention by Japan is unlikely to have much effect in curbing yen gains, traders say, and for weeks markets have speculated that the authorities would rather cooling off the yen's rally with some form of monetary easing.The central bank is lining up its options, although officials are divided on whether to do so before its September 6-7 rate review at an emergency meeting.