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USD/JPY forex signal - Japan Trade Balance - 19 Feb 2018

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Japan's trade balance figures were released earlier today for the month of January. According to official reports, Japan had a trade merchandise deficit of 943.41 billion yen during the month. This was higher than the forecasts that pointed to a deficit of 1.03 billion yen. In December, the trade deficit was recorded at 368.7 billion.

Data showed that exports had increased 12.2% which was higher than the estimates of a 9.4% increase. This was also an increase from December's 9.3% increase on an annual basis.

For the same period imports were seen rising 7.9% on the year which was higher than the forecasts of 7.7% but imports surged at a slower pace compare to December's increase of 14.9%. Following the release of the data, the Japanese yen did not react much. However, the yen was seen easing, keeping the momentum from last Friday.

With the economic calendar light today, most of the trading is likely to be technical and the markets will take cues from the broader developing themes in the international markets. Last week the yen was seen strengthening which prompted Japanese officials to give verbal remarks in order to stem the gains in the currency.

The forex signal for today is USDJPY. The currency pair has posted strong declines in the past week with the U.S. dollar weakening and the broader risk aversion sentiment in the market pushing the yen higher.

Following Friday's declines, USDJPY has managed to post a rebound in the short term. We however expect to see price posting a higher low ahead of further gains to the reversal in the declines.

Therefore, for us is ideal to go long at 106.33 targeting the near term resistance level at 107.10 with stops at 105.91. We expect USDJPY to consolidating at the current levels before breaking out above 106.33.

forex signal usdjpy 19 feb 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.