Yesterday USD/JPY was the center of attention
Yesterday, the Bank of Japan did not increase the current program, and investors began to leave the Japanese market.
As a result, Nikkei225 collapsed by 3.61%, while the Japanese yen lost 350 points. Moreover, the FOMC hints that the rate hike may be postponed only increased the pressure.
It is worth to say that the indicators showed a positive trend. In March industrial production grew by 3.6%, the unemployment rate fell to 3.2% from 3.3%. The volume of retail sales showed a decline by 1.1%, but the forecast was even worse -1.5%. The household spending rose by 0.5% in March.
How to trade
The pair USD/JPY will try to stay above 107.00. Now the levels of 108.86, 107.67, 106.97, 106.42 are the key levels on the hourly chart of the USD/JPY. The downward movement is possible after the breakdown of 106.97. If the pair falls below 106.97, we would buy put binary options.
Target price: 106.97
Close price: 106.28
Expiry time: 20:00 GMT