The USD Dollar (USD) inched lower against the Japanese Yen (JPY) on Wednesday, decreasing the price of USDJPY to less than 112.50 amid some key economic events. The technical bias shall remain bullish because of a higher high in the recent upside rally.
Technical Analysis
As of this writing, the pair is being trade around 112.25. A support can be noted around 112.00, the psychological number ahead of 110.00, a critical support zone and then 109.35, the confluence of 50% fib level as well as horizontal support area.
On the upside, a hurdle can be noted near 113.64, the trendline resistance area ahead of 115.37, the swing high of the recent upside rally and then 118.61, the high of the last major upside wave as demonstrated in the give above daily chart. The technical bias shall remain bullish as long as long as the 112.58 support area is intact.
Japan’s Current Account Balance
Japan posted a current account surplus of 1,112.2 billion yen in December, the Ministry of Finance said on Wednesday – up 18.3 percent on year. The headline figure was shy of forecasts for a surplus of 1,183.3 billion yen and down from 1,415.5 billion yen in November. The trade balance showed a surplus of 806.8 billion yen, exceeding expectations for 751.1 billion yen and up from 313.4 billion yen in the previous month. The adjusted current account surplus was 1,669.2 billion yen versus expectations for 1,709.4 billion yen and down from 1,799.6 trillion yen in the previous month.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term.
