Forex Story: USD/JPY Rebounding, Watches 108.00 Level
Ming Lam May 21, 2020 10:19 AM
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.
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.
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