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USD/JPY resisting downward pressures

FXStreet (Guatemala) - USD/JPY was ticking up attempting to break out of the 5 minute resistance post data flows and ahead of the Tokyo official and Nikki open.

USD/JPY was pressing down on 102.30 ahead of 102.20 support. On the Tokyo open, the unit is currently oscillating mid 102.30’s. Through a series of modestly benign data, Imports came in positive at 25.05% vs 21.8% while the trade deficit deteriorated further. Earlier, the FOMC minutes showed that a number of officials said QE tapering plan should be adjusted if economy substantially deviated from expectations. Further key notes were that participants of the meeting agreed it would soon be appropriate to change forward guidance on first rate rise. However, a few participants raised possibility of rate rise relatively soon and some FOMC participants wanted statement on goals to explicitly say below-target inflation is as undesirable as above target inflation.

USD/JPY Levels

The 20 DMA is 102.34, the 50 DMA is 103.42 and the 200 DMA is 100.19. RSI (14) reads 56.64. Supports are ascending from 101.25, 101.38, 101.53 and 101.74. Spot is 102.34 while resistances are 102.43, 102.76, 102.94 and 103.78.

Trend in Japan's trade deficit deteriorates further

Japanese trade balance for January came at Y -2790bn vs Y -2487.0bn expected and Y -1304.2bn prior. Trade balance (adjusted) was Y -1818.8bn vs Y -1510.0bn expected and Y 1148.6bn prior. Meanwhile, exports for January y/y stood at +9.5% vs +12.7% expected and +15.3% prior. Imports for January y/y came at +25% vs +22.7% expected +24.7% prior. The data reinforces the view that Japan remains trapped in a deteriorating trade deficit cycle.
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Fed's Williams optimistic on labor market/inflation

Comments from Federal Reserve Bank of San Francisco President John Williams has just crossed the wires in the last few minutes, noting that the labor market slack should dissipate and inflation to rise.
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