The Japanese yen weakened sharply in early Asia on Friday despite consumer price data showing a faster than expected pace as other data was mixed and more crucial wages data lay ahead. The data was part of a busy suite due at the end of the week from around the region, even with many countries marking the May 1 labor day, including China which still posted official manufacturing figures as well as services. USD/JPY changed hands at 119.66, up 0.23%.In Japan, core consumer prices rose 2.2% yoy in March, a touch higher than the 2.1% seen. As well, the jobless rate ticked down to 3.4%, better than the 3.5% expected. But household spending dropped for the 12th straight time, falling 10.6%, although better than the 12.1% drop forecast by analysts. Official China manufacturing data for April held at 50.1, better than an expected show, and just at the expansion zone.Technical side:USDJPY positioned a moderately convincing reversal on the day after teasing the range support. This pair has failed to get anything directional going for a long time, so we’ll patiently watch for whether 120 can be taken out on any further attempt higher. Currently on a daily chart uptrend looks intact as there are tepid actions seen on this curve. Both RSI (14) and fast stochastic don’t shock on downside, instead RSI showing significant strength on every rallies.Derivative radar: Strategy: Long ButterflyOn this stagnant trend, we are little marginally bullish on this pair. Thus, traders are advised a butterfly derivative position on this pair.This strategy can be established using all calls and is done for a net debit. It is executed by using four identical call options with the same expiration date and on the same underlying asset but different exercise price.It involves buying a call with a low exercise price, buy another call with a higher exercise price and sell two calls with an intermediate exercise price.
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