USD/JPY is up 0.16% in today’s trading, holding just above the 109.00 level at 109.04, gain of 0.17% over Wednesday’s North American close.
The pair still appears to be reacting to the oversold condition that developed on the Stochastic as a result of the recent approach of the 108.00 level. However, upside momentum appears to be slowing, and a test of resistance at the 110.00 area could prove difficult.
On a decline below the recent lows, the next area of support does not come into play until the high established in late October, near the 105.50 level.
In Japan today, it was reported that the trade surplus narrowed in March, as import growth outpaced exports. The Ministry of Finance reported a merchandise trade surplus for March of ¥614.7 billion, down from a surplus of ¥813.4 trillion in February. Analysts in a median estimate forecast a surplus of ¥575.8 billion.
Later today in Japan, at 20:30 ET, manufacturing PMI, preliminary for April, will be released.
In the US today, jobless claims are due at 08:30 ET, as is the Philadelphia Fed Index. Leading indicators will be released at 10:00 ET.
On Friday, US Existing Home Sales will be released at 10:00 ET.