Despite the strengthening of the U.S. dollar quotations USD/JPY has dropped significantly. Yen is traditionally perceived among investors as a defensive asset and geopolitical tensions around the Crimean peninsula and possible sanctions for the Russian Federation have led to increased demand for the yen. In addition, traders reacted positively to the data on the growth of internal orders for machinery by 13.4% in January, against a decline of 15.7% in the previous period. This indicator shows the effectiveness of economic reforms of Prime Minister Abe
Considering loose monetary policy of the Bank of Japan and the strengthening of the dollar against the reduction of the quantitative easing program, we reserve the medium and long term positive outlook for the USD/JPY.
Wish you the profits!
FXFINPRO Capital Analytical department.