28, May 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen continued the growth. The last BoJ meeting minutes, which took place on April 30 affected the market. The minutes showed the disagreement that appeared among the Central Bank members in relation to the overcoming deflation terms. The Japanese data showed the corporate services growth in April, the price grew to 3.4% y/y vs. 0.7 % y/ y, although that may be considered as the Bank of Japan policy consequence, but still, most likely looks like a result of increased tax sales.

Trading recommendations

We believe that the price will consolidate for a while at around 102.23, then will bounce down. The sellers need to break the lower uplink bound 101.90 to confirm the break.

If the pair keeps growing it will get to 102.40 soon.