10.04.2014 - The yen approached the bottom of the channel
Weakening of the U.S. dollar has not led to significant decrease in quotations of USD/JPY. The reason for this has become oversold price and controversial macroeconomic statistics, published today in Japan. Thus, the volume of bank lending in the country fell by 0.1% to 2.1% per annum, the volume of domestic orders for machinery fell in February by 8.8% that partially offset the strong growth by 13.4% in January. The total volume of orders for machinery equipment in March showed an increase of 41.8% per annum.
Despite the stable development of the Japanese economy, we maintain our positive outlook for USD/JPY due to loose monetary policy of the Bank of Japan aimed at the growth of inflation to 2.0% against current 1.3%, and an increase in the monetary base of the country by 60-70 trillion yen per year.
In the near future we expect a resumption of growth of quotes with targets at 102.70 and 104.00.
Wish you the profits!
FXFINPRO Capital Analytical department.