USD/JPY (current price: 102.33)
The Japanese Yen finally got weaker following a very strong rally after the hawkish BOJ statement two weeks ago. The positive news regarding the U.S. economy on Friday and the Chinese economy yesterday were enough to push the pair higher after it got close to the all-important 100 level again last week. The Japanese Economic Sentiment Index came in at 45.1 compared to the expectations of a 42.6 reading, and also helped the rally in the cross on Monday. The Dollar might be in for a long-term rally if the economic numbers continue to stay constructive in the coming months.
Our assessment: USD/JPY is still inside a declining long-term channel, but the short-term prospects might be more bullish following the positive U.S. jobs numbers, and continued rally in global risk assets.
