The Japanese yen has stopped to strengthen despite data on slower growth of the monetary base in Japan in March than in February. Thus, the index rose by only by 3.5%, which is 0.5% less than the previous figure 0.4% and worse than forecast. The price of the pair continues to consolidate around 101.50. To continue the reduction the price needs to fix below 101.25. We anticipate renewed growth of quotes of USD/JPY and recommend opening long positions with a stop below 101.25. In such case the targets will be at the levels 102.70 and 104.00.
We maintain our medium and long-term positive outlook for the pair.