On Wednesday, the greenback strengthened against most major currencies as US economic data came out better than expected. In March, the US existing home sales increased 5.1 percent to a seasonally adjusted annual rate of 5.33 million, from February’s downwardly revised of 5.07 million. The number was better than market expectation at 5.26 million, as announced by the National Association of Realtors.

Japan’s trade balance rose to 775.0 billion yen in March, rose from 242.8 billion yen in January. The value of exports fell by 0.7 percent to 74.12 trillion yen, for the first time in 3 years.

Stronger yen in the first quarter of 2016 is one of the reason in the value of exports decline. Bank of Japan could not weaken the yen on January, even after the central bank adopted the negative interest rate.

USDJPY 21 APRIL 2016 FOREX.TODAY

From the technical analysis point-of view, USD/JPY currently is in bullish bias, testing the intraday key resistance at 109.886. If the price managed to break the resistance, the yen possibly will continue to weaken to 110.194-110.453.

The intraday bias remains bullish and USD/JPY is still in uptrend; however, note that hourly stochastic has crossed down. Technically, there is a possibility for a correction move to the Fibonacci support area at 109.452-109.185. Watch for bullish signal confirmation on a pull-back move to within the Fibonacci area as signal to go long with target at 109.618 and 109.886 in extension

Be careful if the price managed to break the support at 109.185 because it will turn the intraday bias to bearish and possibly will be followed by a bearish move to 108.995-108.752.

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