Global overview for 29/03/2016:
Another set of important fundamental data was released overnight in Japan. According to the Ministry of Economy, Trade and Industry, Japan's retail sales increased slightly for the first time in four months in February. The indicator climbed 0.5% last month, but still is lagging on a monthly basis. In February, retail sales slumped 2.3%. Moreover, the household spending increased to 1.2% on year-to-year basis, the biggest rise in nine months. In conclusion, cautious consumer spending has increased in the recent months. However, the last quarter consumer spending wasn't enough to fuel up the economy after it shrank 0.3% over the quarter. Weaker wages and recent appreciation of the yen doesn't help either as workers have less disposable income to spend. The BoJ efforts, in the form of the negative interest rates, to reach the 2% inflation target didn't really make the situation better so far as well.
Let's now take a look at the USD/JPY pair technical picture at the daily time frame. We can see that bulls are struggling to reach the golden trend line around the level of 114.00. This line will act as a resistance and as long as it is not violated, the bears are still in control over this market.
