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Forex pairs in this Article » EUR/USD, USD/JPY (Moscow) - USD/JPY reversed the early losses and grew close to the resistance zone of 102.40-50 after setting the intraday low at 101.77.

JPY bulls are discouraged by Japanese macro data

The long bear candle on weekly charts confirmed that the currency pair is in for a long term decline. The Yen has grown strongly across the board on the back of the risk-off mood and massive sell-offs at the emerging markets. Japanese trade data published earlier today showed that the trade deficit reached new record highs as weaker Yen made import more expensive. This pushed the Japanese currency lower across the board. The USD/JPY may continue its upside correction during the day as US Dollar usually benefits from EM troubles, while the Japanese officials might also try to talk yen down. If the currency pair manages to break above 102.40-50 zone, where the offers are clustered, the upside may accelerate. In this case there is a good chance that the pair will return to 103.00 resistance and go even higher to 103.20-30, where the upside will be capped by the resistance zone strengthened by 1h 50 EMA. The support is seen at 102.00, followed by 101.70.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 102.62, with support below at 101.63, 101.02 and 100.03, with resistance above at 103.23, 104.22, and 104.83. Hourly Moving Averages are mostly bearish, with the 200SMA at 104.10 and the daily 20EMA at 104.19. Hourly RSI is neutral at 42.
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