USD/JPY needs a break through the 107.50 daily to see the 108.00 mark

USD/JPY retains its neutral stance, trading around the 107.10 level, after retreating from the 107.54 daily high. The pair would need to surpass the mentioned peak to gain speed toward the 108.00 level, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Japan published the June Trade Balance Total, which recovered from ¥-833.4 B in May to ¥-268.8 B, missing the market’s expectation of ¥-35.8 B. Exports in the same period plunged 26.2% while imports were down by 14.4%. Also, the BoJ published the Minutes of its latest meeting. Policymakers showed concerns about the long-term effects of the pandemic on the economy.”

“The 4-hour chart shows that the USD/JPY  pair is trapped between directionless moving averages, while technical indicators remain directionless just above their midlines, in line with the on-hold stance.” 

“USD/JPY would need to break through the 107.50 daily high to be able to extend its gains toward the 108.00 region, while the risk will turn south on a break below 106.95, the immediate support.”