By: Andrei Tratseuski
Despite the negative economic announcements, the Japanese Yen continues to outperform other counterparts. The latest Japanese figures produced a relatively mild growth of Retail Sales which printed at 2.8% compared to 4.7% eyed. The Japanese Yen was amongst the biggest gainers in last week's session. However, with a new week roaming around the Japanese Yen is posed to create at least some sort of a movement. Since the G20 meeting, the higher yielding currencies were edging higher. Nonetheless, the currencies are currently running for the hills as the United States Dollar and Japanese Yen are gaining strength. The trader's are positioning themselves for the upcoming week which may have more than few surprises under its sleeve. The biggest event of course will be the Non-Farm Payrolls released on Friday.
Looking at the technical analysis of USD/JPY pair we notice that the pair stalled at a key level in accordance with our article on Thursday: USD/JPY- How Low Can We Go? . The pair retraced after hitting our specified level. However, the retracement is currently over and the currency pair is on a verge of falling down further. We are looking at 89.00 to be a catalysis for another leg downward. With Japanese officials welcoming or at least not minding a higher value of Yen, we might see a tremendous run to the downside. Nonetheless, if the gains in the Yen will become to drastic over a small period of time, we might see a reaction from the government. Ideally, in order for the Yen to continue gaining strength against its counterparts the following a saying goes, “Slow and Steady wins the race.”
