USD/JPY treading water around 102.50

FXStreet (Edinburgh) - The USD/JPY is now trading in a 102.50-102.60 narrow range, a bit lower than overnight peaks just beyond 102.70.

USD/JPY boosted by data

A much wider than expected trade deficit in the Japanese economy during March weakened the yen in the very first hours of trading, lifting spot to session highs above 102.70. A risk-friendly context also prompted the pair to escalate to higher levels. Moving forward to tomorrow’s Japanese docket, February’s Leading Economic Index will be the only event of note followed by US Existing Home Sales. “, we do expect the JPY to lose ground against USD, with USDJPY rising to 110 by June-end, mostly on reflection of diverging monetary policy outlooks between the two countries”, noted Shaun Osborne, Chief FX Strategist at TD Securities.

USD/JPY significant levels

The pair is now up 0.14% at 102.57 with the next hurdle at 102.71 (high Apr.21) ahead of 102.95 (100-d MA) and finally 102.99 (low Apr.7). On the downside, a break below 102.49 (daily cloud base) would target 102.40 (low Apr.21) en route to 102.33 (low Apr.18).