According to preliminary data, Japan's GDP in Q4 2013 has grown by only 0.3% with growth forecast of 0.7%. At the same time, the industrial production in the country grew only by 0.9%, compared with expectations at 1.1%. Tomorrow will be released the statement on the Bank of Japan on monetary policy.
We do not expect changes in monetary policy aimed at increasing the monetary base up to 60-70 trillion. yen and growth of inflation to the target level of 2%. Policy of Prime Minister Abe, which aims to boost exports is yielding results - companies show record profits, inflation is gradually increasing.
Economists expect the weakening of economy from April to June due to increased sales tax from 5% to 8%. Meanwhile, the quotes are moving in the downward channel and may reach the level of 100.90. After exiting upwards from the channel, the price is likely to reach 103.00.
Wish you the profits!
FXFINPRO Capital Analytical department.