08.07.2014 - The Japanese yen strengthened
The price of USD/JPY fell sharply yesterday and completed the formation of reversal pattern - "double top". As a result, the price reached the nearest support level at 101.80 and will likely continue to decline to 101.60. The upper limit of the downward channel which the price has left before will serve as a support. Positive trade balance surplus which rose to 0.38 trillion in May against 0.13 trillion in April contributed to the strengthening of the yen. We anticipate that the price of the pair will resume growth in the expectation of monetary tightening in the U.S. that will strengthen the U.S. dollar.