USD/JPY: Balance of Trades below expectations
Christophe Chevalier December 16, 2020 1:25 AM
Japan's November Balance of Trades was released below expectations.
This morning, official data showed a 366.8 billion yens surplus for the Japan's Balance of Trades, below 510 billion expected. Exports dropped 4.2% on year in November (vs +0.4% expected) and imports were down 11.1% (vs -9.5% expected). But JPY remains strong.
From a technical point of view, on a daily chart, USD/JPY is capped by a declining trend line and by its declining 50-day moving average (in blue). Readers may therefore consider the potential for further weakness below horizontal resistance at 105.00 as the nearest support would be set at November bottom at 103.10 and a second one would be set at horizontal support at 102.40 in extension.
Source: TradingView, GAIN Capital
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