02.07.2014 - The recovery of USD/JPY has stopped
The price of USD/JPY resumed its decline in the descending channel after it bounced off the lower boundary and reached resistance at 101.60. Statistics on reducing the annual growth rate of monetary base in Japan to 42.6% vs. expected 48.3% has led to a strengthening of the Japanese yen. Within the channel, the price may fall to 100.90. The signal of a trend reversal will be fixing the price above 102.20. We expect that price volatility will increase in the next two days in connection with the release of data on the U.S. labor market and maintain a positive outlook for the medium-term with target prices at 102.70 and 104.00.