Demand for the Japanese yen remains fairly high in relation with tense situation in Ukraine, where continues the anti-terrorist operation and in Vietnam that is having conflicts with China due to the installation of a Chinese oil rig in the disputed territories.
In addition, the strong yen today was supported by positive data on the volume of internal orders for engineering products, which grew by 19.1% in March, against the forecast of growth by 6.1%. Such result is explained by the growth of the sales tax to 8% in April, compared with 5% in March.
Considering the fact that the price of USD/JPY is consolidating above strong support at 101.40, we expect price growth and will recommend to open long positions after the price fixation above 102.00. We keep medium and long term outlook for the yen.
Wish you the profits!
FXFINPRO Capital Analytical department.