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USD/JPY Forecast 23 May 2016

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USD/JPY Forecast 23 May 2016
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This morning, the April data on Japanese trade balance showed the growth, but its structure, as usual, showed the decline.

The exports fell from -6.8% to -10.1% -10.0%, imports declined from -14.9% to -23.3%, which, in fact, caused the growth of the trade balance. The index of business activity in the manufacturing sector showed a decline from 48.2 to 47.6 against expectations 48.3.

Japan will present the following important data only on Friday. But the forecasts are pessimistic for these data (Consumer Price Index).

Today the US presents data on Manufacturing PMI data. Also, it’s worth to pay attention to the speech of the FOMC member Bullard. We expect that the pair will move in the range of 108.70-109.90.

How to trade

If the pair USD/JPY manages to rise above 110.34, we are ready to buy call options. If the pair falls below 109.63, we will try to buy put options.

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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