As inflation numbers fail to impress in Japan, along with contracting household spending, unemployment numbers do improve, but this could all be symptomatic of a nation in population decline and a shrinking labour force. On the other hand, USD data was largely negative this week, but safe haven flows failed to make the JPY stronger than USD. In my opinion, with Macron likely to win the French Presidential elections, its likely to see a risk-on environment continue, and going long on the dips on this pair could, in my opinion, continue.
Technically, we see a bullish Wolfe Wave structure on USD/JPY where target for this move is 111.55. When 1-4 line is hit (target line) we should either see a breakout or rejection. Breakout above 111.55 should target 111.80 zone. However a rejection from 111.55 could drop the pair to POC zone 110.75-90 where new wave of buyers could appear targeting 111.50 and 111.80 again.
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