USD/JPY: Japanese adjusted merchandise trade surplus narrowed in January


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD declined 0.31% against the JPY and closed at 112.92 on Friday.

In the Asian session, at GMT0400, the pair is trading at 113.10, with the USD trading 0.16% higher against the JPY from Friday’s close.

Data released overnight showed that Japan’s adjusted merchandise trade surplus contracted to a level of ¥155.5 billion in January, from a revised surplus of ¥327.5 billion, whereas investors had envisaged the nation to post a surplus of ¥275.5 billion. Moreover, the nation’s exports rose less-than-expected by 1.3% YoY in January, compared to a gain of 5.4% in the previous month. Further, the nation’s imports advanced for the first time since December 2014, after it rose more-than-anticipated by 8.5% on an annual basis in January, after recording a drop of 2.6% in the preceding month.

The pair is expected to find support at 112.63, and a fall through could take it to the next support level of 112.17. The pair is expected to find its first resistance at 113.51, and a rise through could take it to the next resistance level of 113.93.

Looking ahead, market participants await the release of Japan’s flash Nikkei manufacturing PMI for February and All industry activity index for December, both slated to release tomorrow.

The currency pair is trading between its 20 Hr and 50 Hr moving averages.

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