USD/JPY made a run to the upside in last Thursday’s trading and managed to hold onto those gains on Friday and is maintaining within the boundaries of last Friday’s session today. At present, the pair is trading at 110.99, a gain of 0.11% over last Friday’s close.
With Thursday’s move to the upside, the pair broke solidly above resistance defined by the low established May 18th, at 110.24. This break above resistance is a positive development that leaves the next target at June 2nd’s 111.71 high. On a move above this level, the next target is at May 24th’s 112.13 high.
In today’s session, it was reported that Japan’s trade surplus swung into deficit in May, as imports rose faster than exports. The Ministry of Finance reported a May merchandise trade deficit of ¥203.4 billion, down from a revised surplus of ¥481.1 billion in April. Analysts in a median estimate called for the surplus to narrow to ¥76 billion. This is the second time this year that Tokyo posted a trade deficit.
Support is now at the midpoint of last Thursday’s long green candle on the daily chart, at 110.25. Maintaining above this level will keep the overall bias to the upside.
USD/JPY Daily Chart