The quotes USD/JPY continued to grow and reached the upper limit of the upward channel and approached the level of 104.00. The reasons for the increase were several factors. Thus, the beginning of the new fiscal year has led to an increase in investments outside of Japan, which caused a growth in the supply of the yen. In addition, Russian forces have reduced the number of troops on the border with Ukraine, which led to a reduction of geopolitical tensions and falling demand for defensive assets like yen.
Statistics on slower growth of the monetary base in the country was unable to darken the mood of the bulls. The growth of quotations may slow down near the upper boundary of the channel, and now there is a possibility of correction of price, after which the growth can resume. The course of trading will be affected by data on the U.S. labor market, which will be released until the end of the week.
We keep medium and long term positive outlook for the yen.
Wish you the profits!
FXFINPRO Capital Analytical department.