USD/JPY showed a great amount of bearish pressure last week that is also expected to continue this week as well. Today, Japan released Trade Balance report which revealed a trade surplus of 0.10 trln yen, down from the forecast for a 0.25 trln surplus. The worse-than-expected trade proficit affected JPY today and the pair is currently residing inside a corrective structure. On the USD side today, FOMC policymakers Kashkari and Harker are due to sleak on an interest rate decision and further monetary policies. Their comments are expected to bring in good amount of volatility in the pair today. A positive outcome in US events today is likely to cap further gains in JPY.
Now let us look at the technical chart. The price is currently below 111.60-112.20 resistance area. Following the bearish pressure last week, a further bearish move in this pair is expected until the price breaks above 112.20 with a daily close. As the price remains below 111.60-112.20 resistance area, the pair will ride a bearish bias. USD/JPY is expected to move towards 110.10 in the coming days.
