28.02.2014 - The yen came out of the "triangle"
The price of USD/JPY broke the lower boundary of the "triangle" because of the weakening of the U.S. dollar, which was caused by weak statistics on the U.S. labor market. At the same time, positive statistics in Japan have supported the national currency. Thus, retail sales rose by 4.4% in January (compared to the same period of the previous year), which is 0.5% better than analysts' forecasts, besides the volume of industrial production in January increased by 4.0% against expectations of growth at 3, 1%. It is worth noting that inflation, as in the previous month, was 1.3%, which is below the target level of the Bank of Japan -2.0%. This means that monetary policy in the country remains quite soft.
We recommend opening short positions with targets at 100.90, 100.00 and 99.00. At the same time, in the long term, we maintain our positive outlook for USD/JPY.