Published the weak Japanese data stopped the strengthening of the Japanese yen.
The adjusted current account decreased from 1.89 trillion yen to 1.63 trillion yen against the forecast of 2.04 trillion. The bank lending has not changed 2.2%. In the first assessment, Japan's GDP for the 1st quarter was 0.5% - as expected. The private consumption showed an increase by 0.6%, but capital expenditure decreased by 0.7%.
The China's trade balance data was weak - exports decreased by 4.1% vs. -1.8%, but imports amounted to -0.4% vs. -10.9% previously, so it showed a formal increase in the trade balance.
Negative reaction to the data was only the beginning - at the moment, the pair USD/JPY has recovered.
How to trade
If the pair USD/JPY will overcome the noise range of 106.50 - 106.10, it will continue to decline. The short-term upward movement is possible in the range of 107.52 - 108.14. After that, there is a high probability of reversal. We would buy put options if the pair falls below 106.50. We would buy call options if the pair rises above 107.52.
Expiry time: 20:00 GMT