JPY is falling against USD. At the moment, the rate is 110.35, the nearest important resistance is at the level of 110.54 or 6/8 Murrey.
The global demand for the US currency is largely due to Fed’s, which continues to raise interest rates, making carry trade transactions attractive due to the differential of rates between countries. In Japan, economic growth slowed: Q1 GDP decreased by 0.6% compared to the previous year. In addition, the trade balance deficit grew to 578.3 billion yen against the forecast of 205.2 billion yen, as the import of aircraft and oil products from the USA increased significantly (+14%). On the other hand, experts hope that economic growth will continue due to an increase in global demand and the demand for Japanese goods in foreign markets. The main trading partner of the country is still China.
Today, important news on the US economy will also be published, such as Initial Jobless Claims and housing market data.
Support and resistance
Stochastic is around 67 points and does not give signals for opening positions.
Resistance levels: 110.54, 110.90.
Support levels: 110.20, 110.00.
Long positions can be opened after the breakout of the level 110.54 with the targets at 111.13-111.32 and stop loss 110.40.
US Dollar vs Japanese Yen
|Take Profit||111.13, 111.32|
|Support levels||110.00, 110.20, 110.54, 110.90|
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