Key Points
- The US Dollar after nosediving towards the 108.20 level against the Japanese Yen found support.
- There USDJPY pair is currently recovering, but facing a major bearish trend line at 109.10 on the hourly chart.
- Earlier today in Japan, the Merchandise Trade Balance Total for March 2017 was released by the Ministry of Finance.
- The outcome was better than the forecast, as there was a trade surplus of ¥614.7B, more than the forecast of ¥575.8B.
USDJPY Technical Analysis
The US Dollar was under a lot of pressure against the Japanese Yen this past week, as it traded below the 108.50 support for a new weekly low of 108.17. Later, the USDJPY pair gained bids around 108.20, and started recovering.
It has moved above the 23.6% Fib retracement level of the last decline from the 109.98 high to 108.17 low. The pair also moved above the 21 hourly simple moving average at 108.80.
However, it is facing a major resistance near a bearish trend line at 109.10 on the hourly chart. The same area also coincides with the 50% Fib retracement level of the last decline from the 109.98 high to 108.17 low. So, it won’t be easy for buyers to break 109.10 for further gains.
Japanese Merchandise Trade Balance Total
Today in the Japan, the Merchandise Trade Balance Total for March 2017 was released by the Ministry of Finance. The forecast was lined up for the balance between exports and imports of total goods and services in Japan for March 2017 to post a surplus of ¥575.8B.
The result better than the forecast, as there was a trade surplus of ¥614.7B, more than the forecast of ¥575.8B. When we look at the Adjusted Merchandise Trade Balance, there was a trade surplus of ¥172.202B, less than the last ¥680.300B.
Overall, the USDJPY pair might surge higher if it clears the trend line resistance at 109.10.
