Key Points
1. Buy USD/JPY recommendation
2. Buy USD/JPY at 107.40. Stop at 106.95 and target at 108.70
3. Better economic data has boosted hopes of an economic recovery and dented demand for safe haven yen
4. A bullish reversal chart pattern with bullish MACD is a sign of a possible price rally ahead.
Fundamental Comments
1. Better US, China and Eurozone data has boosted hopes of an economic recovery and dented demand for safe haven yen
2. Interest rate differential is in the US dollar favour
Technical Comments
1. An Inverse Head and Shoulder chart pattern is pointing to a price rally to 108.80
2. MACD is bullish and is turning around, hinting of a possible price rally ahead.
