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USD/JPY stretching for more, breaks yesterday's high

4/18/2018, 9:52:15 AMMarket Analysis
USD/JPY stretching for more, breaks yesterday's high

The USD/JPY is continuing to reach for higher ground as the Yen recedes in Asia trading, hitting into 107.30 following mixed Japanese trade data.

The safe-haven Yen is falling back as Japan's Nikkei 225 index continues the American session's equities rally, and the Japanese index is up over 1.2 percent in early trading. The pair has broken through yesterday's high of 107.20 to begin trading back near the topside consolidation that has kept the USD/JPY trapped below 107.40 for most of April's trading.

As noted on the Japanese trade data, "Japanese exports rose 2.1 percent in March - its 16th straight monthly rise, although the actual reading was well below the estimated figure of 4.7 percent. Meanwhile, Imports fell 0.6 percent in the year to March, versus the median estimate of a 5.4 percent increase, according to Reuters report."

USD/JPY Levels to watch

As was reported earlier by FXStreet's Ross Burland, "Valeria Bednarik, chief analyst at FXStreet noted that the pair has posted a lower low and a lower high daily basis for a third consecutive day, although with nothing yet to confirm a bearish breakout.

"Shorter term, and according to the 4 hours chart, the pair continues developing above its 100 and 200 SMA, with the shortest advancing above the largest, and currently acting as dynamic support around 106.60, but with technical indicators holding within negative territory, with limited downward strength, also skewing the risk toward the downside," Valeria added.