USDJPY Remains Above 108, Bulls Target 109.39
USDJPY trades in narrow trading range, adding 0.09% at 108.20 after mixed macro figures; The Japan Imports (year over year) came in at -12% below expectations of -11.2% in August. Japan Exports (year over year) came in at -8.2%, topping forecasts of -10.9% in August. The Japan Merchandise Trade Balance Total came in at ¥-136.3B, beating expectations of ¥-355.9B for August. Trade tensions with South Korea weigh on Yen.
Yen hit the daily low at 108.07 and the daily high at 108.26. The central bank of China set the Yuan rate (USDCNY) at 7.0728 versus yesterday fix at 7.0730.
On the technical side, USDJPY continues higher for second day as the rebound which started in August 26th from 104.44 lows sis intact. The pair trades for third day above the descending trendline from April 2019 which stands around 107.90. On the upside first resistance stands at 108.26 the daily high, a convincing break above will attract more bids that can drive the prices up to 109.39 the 200-day moving average. Long positions can sit comfortably as long as the pair holds above 108, stop-loss orders must be placed at 108.03 the 100-day moving average, as if the pair breaks below, offers will step in and might push the price down to 107. On the downside, immediate support for USDJPY stands at 108.07 today’s low while extra bids will emerge at 107.48 the low from September 16th. USDJPY technical picture is bullish now as the pair holds above the 100-day moving average.