Industrial production, which is a key indicator for the Japanese economy fell in February by 3.4%, compared with growth of 3.7% in the previous period. Analysts forecast a drop in the index by 1.8%. The Ministry of Economy, Trade and Industry announced that production remains weak despite the monetary stimulus, inventories increased, indicating that the imbalance of demand and production. Index is forecasted to fall in March and to rise in April. Negative statistics, the strengthening of the US dollar and falling demand for defensive assets, after its sharp rise against the background of the conflict in Yemen, has led to the growth of quotations of USD/JPY. We expect a continuation of the current positive momentum and recommend holding long positions with the target at 125.00 and stop below 118.50.