USD/JPY mixed on trade data, BoJ minutes

FXOpen

USD/JPY traded mixed on Monday after a ministry of finance report showed increased trade deficit and Bank of Japan (BoJ) hinted no additional easing. The pair hit as low as 101.75 during Asian session and then rebounded to 102.76.

At the moment of writing pair is being traded around 102.49, slightly down from today’s high. Bias is bearish because the pair printed Lower Low (LL) in current wave. There are two major resistance levels on upside. First hurdle is at 103.28, 50% retracement and second major resistance is around 104.09 which is a confluence zone of moving averages as well as 76.4% fib level. A break above this confluence zone may threaten 104.83 that is high of current wave down.

USD/JPY mixed on trade data, BoJ minutes

On downside first support is seen around 101.39, a break below this level may target 99.93-100.00 zone, 200 DMA and psychological level.

Earlier a government report showed that Japan’s trade deficit rose surprisingly to JPY 1.302 in contrast to median projection of analysts that was 1.223 trillion. Furthermore, BoJ policymakers ruled out any possibility of additional easing as current stimulus is achieving its objectives successfully, according to minutes of their recent monetary policy gathering.

It is to be noted that global stock markets are extending losses on third consecutive day on uncertainty about emerging economies after China’s manufacturing slowed down. Japan’s Nikkei stock exchange which is positively correlated to USD/JPY has already fallen 385.83 points or 2.51% in Asian session.  Federal Open Market Committee (FOMC) upcoming gathering which is due on Jan 28-29 is also putting pressure on stock markets because more tapering by Federal Reserve will strengthen the US Dollar and in turn increase debts of emerging economies.

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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

An Important Bullish Pattern Forms on the NIO Share Price Chart
Shares

An Important Bullish Pattern Forms on the NIO Share Price Chart

Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 – a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April,

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season
Indices

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season

Despite the fact that President Trump’s earlier decision to impose tariffs (at higher rates than expected) shook the stock markets, the S&P 500 index (US SPX 500 mini on FXOpen) could still end April without significant losses

USD/CAD Consolidates
Forex Analysis

USD/CAD Consolidates

In the second half of April, the USD/CAD chart has shown a decline in volatility following significant spikes observed since February.

The Canadian dollar has stabilised against the US dollar within the 1.390–1.380 range over the

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. 60% 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.