USD/JPY has shown a good amount of impulsive bullish move recently bouncing off from 109.00 support area. Yesterday, Japan’s Trade Balance report was published with a downbeat deficit of 0.13 trln which was expected to be at a 0.35 trln surplus. As the export demand and currency demand are directly linked, a trade report has high impact on a currency’s dynamic and it also influences industrial production and domestic producer prices. The dismal Trade Balance report yesterday led to more gains of USD against JPY yesterday. Besides, the US dollar is one of the most attractive assets right now due to rise in the Treasury Yields. Recently, FOMC member William Dudley dropped a hint about rising wages to revive domestic inflation in the short term. USD Current Account report is due later today which is expected to show wider deficit at -124B from -112B previously and FOMC member Stanley Fischer is going to speak after a while about the nation’s key interest rate and future monetary policy decisions. Today, Japan did not present any economic reports but any negative economic report from the US today will lead to further gains on the JPY side.
Now let us look at the technical chart. The price is currently being rejected off the 111.70. Recently, the price has respected the level as resistance for several times. So at present, the following scenario is expected. If the price remains below that level with a daily close, then the price will go down towards 108.80 support level in the coming days. On the other hand, if the price breaks above 111.70 with a daily close above it, we will consider buy positions with a target towards 114.30 area.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
USD/JPY has shown a good amount of impulsive bullish move recently bouncing off from 109.00 support area. Yesterday, Japan’s Trade Balance report was published with a downbeat deficit of 0.13 trln which was expected to be at a 0.35 trln surplus. As the export demand and currency demand are directly linked, a trade report has high impact on a currency’s dynamic and it also influences industrial production and domestic producer prices. The dismal Trade Balance report yesterday led to more gains of USD against JPY yesterday. Besides, the US dollar is one of the most attractive assets right now due to rise in the Treasury Yields. Recently, FOMC member William Dudley dropped a hint about rising wages to revive domestic inflation in the short term. USD Current Account report is due later today which is expected to show wider deficit at -124B from -112B previously and FOMC member Stanley Fischer is going to speak after a while about the nation’s key interest rate and future monetary policy decisions. Today, Japan did not present any economic reports but any negative economic report from the US today will lead to further gains on the JPY side.
Now let us look at the technical chart. The price is currently being rejected off the 111.70. Recently, the price has respected the level as resistance for several times. So at present, the following scenario is expected. If the price remains below that level with a daily close, then the price will go down towards 108.80 support level in the coming days. On the other hand, if the price breaks above 111.70 with a daily close above it, we will consider buy positions with a target towards 114.30 area.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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