USD/JPY (current price: 102.20)
The Japanese Yen finally declined after the words of Haruhiko Kuroda the Governor of the Bank of Japan, who reassured markets that the central bank won’t let the currency go higher without doing anything it can to stop the appreciation. Japanese Retail Sales fell by -1.9%, which was more than expected, but that didn’t stop the Yen from rising yet again, almost erasing Tuesday’s gains in the pair. The 100 level still remains in sight for the cross as strong resistance is ahead for bulls near the 103.80 level.
Our assessment: The pair could easily drop back to 98.50, the intraday low from Friday, although the Bank of Japan will probably do everything to defend the all-important 100 level.
