USD/JPY (current price: 106.14)
The Japanese Manufacturing PMI came in better than expected on Friday, just as the Japanese Trade Balance did today in early trading. The positive releases failed to support the currency, as the Yen continues to trade in a negative trend since the Japanese elections that reassured the leadership of Prime Minister Shinzo Abe. The FOMC meeting later this week might give a further boost to the pair as U.S. economic indicators still show modest growth.
Our assessment: The pair is right at the upper boundary of a declining long-term trend channel and a move above the formation could signal a major bullish reversal.
