The rally in USD/JPY is getting tired.
Having moved from a low of 100.31 two weeks ago to a high 104.82 on Friday, the currency pair is vulnerable to a correction. US stocks moved into negative territory near the end of the trading session and economic data tomorrow is expected to be dollar negative. With the Euro having its own share of problems, weak US numbers may be better reflected in USD/JPY instead of the EUR/USD, especially since we had some good news from Japan. Large retail sales increased 0.2 percent in March while sales in general rose 0.5 percent. There is a good article the financial papers today talking about how the pickup in inflation that Japan has been craving is coming from the worst place possible. Instead of prices being driven higher by growing demand, they are rising because of speculative interest.
