• USD/JPY gained some ground on Wednesday as stronger dollar offset upbeat Japanese trade data.
• Japanese exports jumped 16.8% year-on-year in January, up for a fifth straight month, data from the Ministry of Finance showed on Wednesday.
• Imports decreased 2.5% in January from a year earlier, versus a 3% increase expected by economists.
•The trade balance stood at a deficit of 1.15 trillion yen ($7.50 billion), compared with the forecast of a deficit of 2.14 trillion yen.
• The data supported expectations that the Bank of Japan will continue normalizing monetary policy.
• Immediate resistance is located at 159.26(23.6%fib), any close above will push the pair towards 160.00 (Psychological level).
• Support is seen at 152.22(38.2%fib) and break below could take the pair towards 151.98 (38.2%fib)
Recommendation: Good to buy around 153.60, with stop loss of 154.50 and target price of 153.00
