USD/JPY (current price: 111.22)
The Japanese Yen declined on the first day of the week, as Retail Sales showed a small yearly decline of-0.8%. The number was slightly better than expected but the currency continued lower after a bearish Friday session following the hawkish speech of Fed chair Janet Yellen. Investors think the Bank of Japan will continue to pursue easy monetary policies as the Japanese economy is not showing any signs of picking up.
Our assessment: The pair broke out from a short-term consolidation pattern and now it looks to be headed for the top of the widening longer-term pattern near 112.
