The Japanese Yen has been growing against the American dollar. The key resistance level is 120.00. If this level is broken out, the decline in the Japanese currency may continue.
Recently published data showed that the policy of monetary incentives was favourable for the Japanese economy. In particular, trade surplus has stabilized, which is associated with the low rate of the national currency and recovery in the U.S. economy. Trade surplus amounted to 229.3 billion yen; volume of export increased by 8.5% last month, while import reduced by 14.5% for the third time. The largest item of Japanese export was automobiles, which are in demand in the USA.
Today, U.S. data on durable goods orders for March will become known. If this index will be lower than expected, the Yen can strengthen.
Support and resistance
The nearest resistance level is 120.31– 6/8 Murray.
Support level is 118.75– 1/8 Murray.
Short positions can be opened after breakdown of the level of 119.00 with protective order at 119.30 and the target of 118.25.