USD/JPY Current price: 111.48
The USD/JPY pair advanced steadily all through this Monday, ending the day not far below a daily high of 111.52. Disappointing Japanese trade balance figures, a confident Fed's Dudley and rising yields backed the advance. The May Japanese trade balance, released at the beginning of the week, came well below expected, posting a deficit of ¥203.4 billion, missing an expected surplus of ¥76.0B. Imports, however, increased by 17.8% when compared to a year earlier, while exports rose by 14.9%, doubling previous month's gain but slightly below expected. US Treasury yields advanced during the American session, with the 10-year note benchmark up to 2.19% from previous 2.16%, backing the pair's recovery. The intraday advance could extend over the next few sessions, as the price recovered above the next Fibonacci level, now the immediate support at 111.25, the 50% retracement of its latest weekly advance. In the 4 hours chart, the Momentum indicator eases within positive territory, rather reflecting the slow advance than suggesting easing upward strength, whilst the RSI indicator advances, currently at 67. In the same chart, the price is trying to advance beyond its 200 SMA also indicating additional gains ahead, initially towards 112.00, the 38.2% retracement of the same rally.
Support levels: 111.25 110.80 110.50
Resistance levels: 111.60 112.00 112.45
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