- The US dollar gained a lol of traction versus the Japanese yen, but failed to break an important resistance near 104.20.
- There is a major bearish trend line formed on the hourly chart of USDJPY, which is acting as a resistance and stopping gains.
- Today, the Japanese Merchandise Trade Balance Total was released by the Ministry of Finance.
- The outcome was above the forecast, as there was a trade surplus of ¥498.3B in Sep 2016.
USDJPY Technical Analysis
The US dollar recently found sellers near 104.20, and moved down versus the Japanese yen to test the 103.50 support. The USDJPY pair is again recovering, but facing sellers near a bearish trend line formed on the hourly chart.
There is also a major bearish trend line on the same chart. So, it won’t be easy for the dollar buyers to remain in control and push the pair above the trend line resistance.
However, the pair is currently above the 21 hourly simple moving average, which is a positive sign in the short term.
Japanese Merchandise Trade Balance
Today in Japan, the Merchandise Trade Balance Total, which is a measure of balance amount between import and export was released by the Ministry of Finance.
The market was aligned for a trade surplus of ¥341.8B in Sep 2016. However, the result was better, as the trade surplus was ¥498.3B. The Adjusted Merchandise Trade Balance was also positive, as it came in at ¥349. Imports and exports came in at -16.3% and -6.9% respectively. Both declined, but it was above the forecast, as the market was expecting a decline of -16.6% and -6.9% respectively.
The Japanese yen buyers were not impressed by the result, and it looks like the USDJPY pair may challenge 104.10 soon.