Japanese Yen Trims Gain As USD/JPY Eyes 119.00
Nathan Kay | Feb 20, 2015 04:13PM ET
The Japanese yen traded a lot lower recently not only against the US dollar, but also against the Euro and the British pound. However, the forex market sentiment is still favoring for more gains in the USD/JPY pair in the near term. The Japanese yen managed to post gains earlier during the Asian session, but later lost most of it as the US dollar buyers came into action again.
There were a few releases lined up today, including the Leading Economic Index, Japanese Coincident Index, All Industry Activity Index and Merchandise Trade Balance. The first one was the Japanese Merchandise Trade Balance Total, which was released by the Ministry of Finance. The market was expecting it to register a trade deficit of ¥-1,691.0B in January 2015, compared to the preceding month. However, the outcome was better than forecast with a reading of ¥-1,177.5B. Moreover, the Japanese Adjusted Merchandise Trade Balance came in at ¥-406.124B, up from the previous revised reading of ¥-620.667B. The Japanese yen was seen gaining ground after the release.
Japan’s Leading Economic Index
There were some other releases as well like the Leading Economic Index, which was released by the Cabinet Office. The end result was on the higher side, as the index climbed from the last reading of 103.7 to 105.6 in December 2014. Furthermore, the Japanese Coincident Index was also published around the same time, which rose from the previous reading of 109.2 to 110.7.
One more key release was scheduled as the All Industry Activity Index was released by the Ministry of Economy, Trade and Industry. The forecast was not expecting a major decline this time, but the end result was lower, as the All Industry Activity Index declined by 0.3% in December 2014, compared to a month ago. The preceding reading was also revised down from 0.1% to 0%.
Technically, the USD/JPY pair dropped towards the 118.40 level recently where the US dollar buyers managed to hold the downside. The pair broke the 100 hour moving average, but later managed to climb back higher above the same. As of writing, the pair is testing a major resistance area around 118.80-119.00 where the US dollar sellers might fight to protect the upside in the near term. A break higher could take it towards the 119.50 level.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.