FxWirePro: USD/JPY gains some upside momentum but still bearish

 • 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