USD/JPY: difficult to find direction
By Elizabeth Belugina
During the past weak Japan released several pieces of disturbing data. Firstly, industrial production fell by 6.2% in February, which is the biggest decline since the devastating earthquake in March 2011. Secondly, the Bank of Japan’s Tankan survey of large manufacturers showed that their sentiment is at the worst levels in 3 years.
Yet, USD/JPY stayed under pressure because of the greenback’s general weakness as a result of Janet Yellen’s comments. Better US economic data supported the greenback. Together with weak Japanese data this news solidifies the support levels. Yet, with silence from the Bank of Japan the pair should be heavy and any advance will be slow.
Next week we will the events of only medium and lower importance in Japan’s economic calendar. Pay attention to the market’s risk sentiment.
Support is at 111.85, 111.40 and 111.00. Resistance is at 113.00, 113.80, 114.00.