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USD/JPY Forecast 21 Apr 2016

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USD/JPY Forecast 21 Apr 2016
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As we expected, the pair USD/JPY continues to strengthen

Yesterday, the yen added 64 points, even on the back of weaker-than-expected trade balance data.

The balance, taking into account seasonal fluctuations amounted to 0.28 trillion yen against expectations of 0.45 trillion. Exports decreased from -4.0% to -6.8%, and imports from -14.2% to -14.9%.

However, the statements of Governor of the Bank of Japan on further easing, if necessary, support the yen. It also promotes the growth of Nikkei225.

In the US, Philadelphia Fed Manufacturing Index is forecasted down from 12.4 to 8.9. Initial jobless claims may show some deterioration - 265K vs. 253K the previous week.
Taking into account the positive expectations for the US economic indicators today and tomorrow, we expect the growth of the pair USD/JPY to 110.50 and above.

How to trade

We should buy call options if the pair USD/JPY rises above 109.90.

Asset: USD/JPY
Direction: CALL
Target price: 109.90
Expiry time: 20:00 GMT

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. He has no business nor personal relationships with any mentioned government entities or stocks. 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.

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