FXWIREPRO: USD/JPY Extends Rally for the Second Straight Session, Markets Cheer Stronger Chinese Exports Data
- Verbal intervention from Japanese officials trying to put a pause the continued strength in the Japanese currency saw USD/JPY stage a rally overnight .
- China's trade balance for March came in at $ +29.86 bln, slightly below estimates at $ +30.85 bln.
- Details showed that exports and imports picked up pace in March, further boosting investors’ confidence on improved risk sentiment.
- Risk-on rally in the Asian equities, particularly the Japanese stocks, support recovery in USD/JPY in the Asian session today.
- The pair has taken out Tuesday’s high at 108.79 and is on track to retake the 109 handle, is currently trading around 108.84 levels.
- Next immediate resistance above 109 is seen at 109.09 (23.6% Fib retrace of 113.803 to 107.630 fall). Breaks above could see gains upto 109.90.
- 5-DMA at 108.30 is immediate support on the downside ahead of 107.63 (Apr 11th lows).
- In the U.S. calendar, focus remains on the US retail sales and PPI releases due later today for fresh direction along with Thursday’s inflation report.
Recommendation: Good to buy dips around 108.75/80, SL: 108.30, TP: 109/109.70
The material has been provided by InstaForex Company - www.instaforex.com