USD/JPY Rallies After Japan’s Trade Balance News

FXOpen

The US Dollar (USD) inched higher against the Japanese Yen (JPY) on Monday, increasing the price of USD/JPY to more than 111.50 following the Japan’s trade balance news. The technical bias remains bullish because of a higher high in the recent upside move.

Technical Analysis

As of this writing, the pair is being traded around 111.49. The pair is expected to face a hurdle near 113.31, the 50% fib level ahead of 114.19, the upper trendline as demonstrated with brown color in the given above chart and then 115.50, a long term resistance level on daily chart.

USD/JPY Rallies After Japan’s Trade Balance News

On the downside, a support may be seen near 110.44, the 23.6% fib level ahead of 110.00, the psychological number and then 109.12, a short-term horizontal support area. A break and daily closing below the 109.12 support shall incite more selling pressure in the long run. The technical bias shall remain bullish as long as the 109.12 support area is intact.

Japan Trade Balance

Japan’s exports rose in April to mark their fifth straight month of gains, as shipments of semiconductors and steel expanded, signaling that more robust overseas demand could underpin a steady economic recovery. Exports rose 7.5 percent in April from a year ago, below the median estimate of 7.8 percent annual growth, finance ministry data showed on Monday. It followed a 12.0 percent rise in March. The data also showed Japan’s trade surplus with the United States narrowed. Exports to the United States increased 2.6 percent in April from a year ago, gaining for the third straight month due to larger shipments of cars and auto parts. But Japan’s trade surplus with the United States fell 4.2 percent in April from a year ago to 586.7 billion yen ($5.27 billion).

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels can be a good strategy in short to medium term.

 

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.