Japan’s Merchandise Trade Balance posted a deficit of ¥930.4B in April. Meanwhile, the greenback is recovering some ground across the board, with USD/JPY trading around 107.80, as the market sentiment deteriorates, and could accelerate its advance once above 108.08, FXStreet’s Chief Analyst Valeria Bednarik reports.
Key quotes
“April Merchandise Trade Balance came in at ¥-930.4B much worse than anticipated. Exports were down by 21.9% while imports decreased by 7.2%. The preliminary estimate of the Jibun Bank Manufacturing PMI came in at 38.4 in May, after printing at 41.9 in April.”
“The US session will bring Initial Jobless Claims for the week ended May 15, foreseen at 2.4 million, and the preliminary estimates of Markit PMIs for May. Both, Services and Manufacturing output are expected to have bounced, but also to remain well into contraction territory.”
“USD/JPY is developing above all of its moving averages, and with the 20 SMA maintaining its bullish slope above the larger ones. […] Another leg higher could be expected on a break above 108.08, the weekly high.”
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