USD/JPY: Trade Deficit Widened In Japan, BoJ Meeting In Focus

USD/JPY: Trade Deficit Widened In Japan, BoJ Meeting In Focus

For the 24 hours to 23:00 GMT, the USD strengthened 0.52% against the JPY and closed at 84.36.

The Yen declined against the USD, weighed down by expectations the Bank of Japan (BoJ) would unveil more monetary stimulus after a policy meeting on Thursday.

In the Asian session, at GMT0400, the pair is trading at 84.26, with the USD trading 0.12% lower from yesterday’s close.

This morning, trade deficit in Japan widened to ¥953.4 billion in November, less than market expectations and compared to a downwardly revised ¥551.1 billion shortfall recorded in October. The adjusted trade deficit stood at ¥868.5 billion in November, compared to an upwardly revised deficit of ¥624.3 billion recorded in October. Meanwhile, on an annual basis, the exports fell 4.1% to ¥4.983 trillion in November, whereas imports rose 0.8% (YoY) to ¥5.937 trillion in November.

The pair is expected to find support at 83.91, and a fall through could take it to the next support level of 83.56. The pair is expected to find its first resistance at 84.52, and a rise through could take it to the next resistance level of 84.78.