FXstreet.com (Barcelona) - Brown Brothers Harriman analysts write that recent data leaves little doubt that the Japanese economy is contracting for the second consecutive quarter. They note that deflationary forces continue to be evident and next week´s BoJ meeting comes on the heels of this weekend´s national elections. Political and economic considerations have as such favoured the weak Yen story. The five-fold increase in gross short Yen futures contracts at the IMM since early October illustrates the extent to which sentiment has shifted. Meanwhile they finish by highlighting that option related offers near 83.00 are thought to be helping to provide a cap to the dollar.

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