USD/JPY has posted gains on Friday, continuing the upward movement which has characterized the pair this week. Currently, USD/JPY is trading at 103.60. On the release front, Japanese Consumer Confidence posted a reading of 42.0, above the estimate.
The US Dollar is currently facing sellers against the Japanese yen and remains at a risk. There is a descending channel pattern formed on the hourly chart of the USDJPY pair, which is pushing the price down.
The aggregate EBIT margin for Japanese companies stands at 7%, which is much higher than in the last three decades. The recent reporting season confirmed the pace of profit growth in Japan has slowed down due to recent yen appreciation. However ...
Moreover, markets do not view the Bank of Japan as having credibility in meeting the 2 percent inflation target. The prospect of a "hard Brexit" where the United Kingdom leaves the EU single market is placing downward pressure on the GBP.