Sell on a level breakthrough of 102.35 with 101.40 target. Stop loss = 102.85.
Reason for the trading strategy
The publication of negative data on the business activity indexes in Japan and China, yesterday's decline of the EU rating by S&P (from AA to AA) are forcing investors to buy the defensive yen. Meanwhile, the May decline from -0.3% (y/y) to -0.4% (y/y) in the core consumer price index in Japan creates preconditions for a future expansion of the quantitative easing program in the country.