China has pleased investors with positive macroeconomic statistics this morning. In 2020, GDP grew by 2.3%, and industrial production increased by 7.3% y/y in December. Both indicators exceeded market expectations.

This is a positive signal for the equity markets and the currency pair, insofar as USDJPY is historically correlated with equity markets.
According to CTFC, the positions of large speculators on the Japanese yen have almost not changed over the past week. The hedge funds continue to build up “shorts” on the US dollar. Negative US real interest rates leave investors with no choice but to boost sales of the US currency.

Investment idea: Buy 103.65 / 103.50 and take profit 104.00.