USD/JPY: Attention on a break below 106.90

Japan Trade Balance came much worse than expected. Meanwhile, USD/JPY is under pressure and could accelerate its decline of a break below 106.90, FXStreet’s analyst Valeria Bednarik reports.

Key quotes

“Japan published its March Trade Balance, which posted a surplus of ¥103.1B much worse than anticipated, although the Eco Watchers Survey showed that the outlook improved to 16.6, while the assessment of the current situation rose to 7.9, both beating expectations.” 

“The American session will bring April PPI and a speech from Federal Reserve’s chief, Jerome Powell.”

“The 4-hour chart shows that the USD/JPY pair has continued to retreat  from a bearish 200 SMA, now hovering around a bearish 100 SMA.

“The decline could accelerate if the pair breaks below 106.90, the immediate support.”