The pair USD/JPY can overcome the upper limit of the price range today
The pair USD/JPY continues to trade in a range of 107.70-109.10, approaching its upper border.
Yesterday, the US dollar could strengthen by improving the situation in the stock market (S&P500 gained + 0.97%) thanks to the good corporate reports.
The Bank of Japan reported on the assessment of certain inflation indices: CPI for corporate goods in annual terms fell from -3.4% to -3.8%.
But China's exports increased by 11.5% in March vs. 2.5%, and this - the first increase since last year. The trade balance showed improvement: 195 billion Yuan against 210 billion in February. Chinese China A50 Index increased by 1.92%, Japanese Nikkei225 by 2.64% due to exceeding the expectations concerning the corporate reports.
Today, the investors will be focused at the US retail sales in March. The retail sales are expected to grow by 0.4%. Investors also expect good performance on inflation indicators: the producer price index.
The US is also to publish data on crude oil inventories from the Department of Energy, which is likely will exceed the forecasts. We the growth of the pair USD/JPY to 109.70 area.
How to trade
We would buy CALL options if the pair rises above 109.10.
Target price: 109.10
Close price: 109.26
Expiry time: 20:00 GMT