And it may become the start of a long-term rally given the strong yen is not appreciated by Japanese government given export oriented nature of economy. However, everything will depend on the released by the States data. Today the market was focused on US retail sales report
Four months in a row it missed expectations, but today monthly rise was 0.6% far above the forecasted 0.4%. This is the largest growth since December, 2016, but it was driven by a surge in motor vehicles (record incentives) and department stores. Year-over-year number was revised higher and showed 4.2% rise in July. It drove the rate hike expectations higher supporting USD demand.
It means, now USD/JPY has all the chances to go higher targeting 111.00 in short period and 111.70 to follow.