Sasha Singh
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USDJPY : Dollar up on Japan's Widened Trade Deficit

USDJPY is reacting to the widened trade deficit in Japan. Yesterday Ministry of Finance in Japan reported the Trade Balance data according to which Japan’s trade gap widened to 1.446 trillion yen more than the forecast of 1.070 trillion yen in March 2014 with exports up by 1.8% year on year as compared to the forecast of 6.3% year on year gain and imports rose 18.1% with expectations for an increase of 16.2%. From the data we can see that country has reached record low trade deficit.

On the 4 hour chart, Yen weakened against dollar on missed data however the rising wedge is giving some kind of bearish signal. The pair might fall down from the support trend line of the wedge finding support at 102.27. Investors will be focusing on the housing data coming out tomorrow for US at 10:00 AM EDT.