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