THE YEN HAS RESUMED DECLINE AMID WEEK TRADE DATA IN JAPAN
The USD/JPY quotes are growing after the recent correction caused by profit taking ahead of the weekend. Support for the yen as a safe haven asset came due to fears of falls in the US stock markets. Today we saw weak data published for the Japanese trade balance in May which came in at 0.13 trillion yen against the expected 0.35 trillion yen. Lately the main drivers for the USD/JPY have been mixed news from the US. The Fed decided to raise interest rates by 0.25% during the last FOMC meeting but the news on the slowdown in inflation growth and decline in the pace of housing market expansion, forced traders to be more careful in taking a position on the dollar’s growth. Today the course of trading may be affected by the speech of FOMC member William Dudley at 12:00 GMT.
Currently the price is trying to continue its upward movement along the ascending support line after it has changed the local negative trend to positive. Gaining a foothold above 110.75 has become a sign of possible growth continuation with the nearest targets at 111.70, 112.00, 113.10 and 114.00. In case of opening long positions, the stop may be set below the local minimum near 110.75.