The Yen continues to strengthen against the USD. The major factor for that was the statement by Haruhiko Kuroda, the head of the Bank of Japan that the price of Yen is too low and the further decline is unlikely. Traders took that as a signal and started selling the currency. Despite the recent decline in the Yen, the Bank of Japan is going to continue stimulating economy through its Quantitative Easing. Economists note that this policy already had a positive effect as the economy grew by 3.9% in the first quarter. Another positive factor is that cheap Yen allows Japanese products remain competitive on the international markets. In general, current downward trend is likely to continue.
Support and resistance
The nearest resistance level is 124.22 (0/8 Murray). Support level is 1/8 Murray (122.66).
Opening long positions is recommended after the breakout of 124.66 with stop-loss at 124.20 and target at 125.30.