Forex Story USDJPY Watches 10800 Level

In face of a sharp decline in Exports, the Japanese yen is weakening against the Dollar...


This morning, official data showed that Japan recorded a Trade Deficit of 930.4 billion yen in April (vs 503.1 billion yen deficit expected, 5.4 billion yen surplus in March).

April Exports slumped 21.9% on year (vs -22.2% expected, -11.7% in March), the biggest decline since the 2009 global financial crisis. Widespread lockdowns in the U.S. and Europe should have helped to pressure demand for Japanese goods.

Growing optimism toward a quicker-than-expected recovery of the global economy from the coronavirus pandemic is showing a dim light at the end of the tunnel.   

However, investors have to watch closely risks on international trade posed by heightened tensions between the U.S. and China.

In face of a sharp decline in Exports, which are a major growth factor for the Japanese economy, the Japanese yen is weakening against the Dollar.

On an Intraday 30-minute Chart, USD/JPY continues a rebound from a low of 107.31 seen yesterday.

Chart showing the US Dollar(USD) to JPY joy as it nears 10800 Level by
Source: GAIN Capital, TradingView

Currently USD/JPY is striking against the Upper Bollinger Band showing potential for an upward acceleration.

In case the Overhead Resistance at 107.85 is surpassed, the currency pair would expect the next line of resistance at 108.00.

Only a return to the Key Support at 107.45 would bring about a Bearish Reversal.

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account