USD/JPY (current price: 114.26)
The Japanese Economic Watchers Sentiment Index came in higher than expected at 48.6. The worse than expected Chinese Trade Balance data pushed Asian currencies lower throughout the day, with the ECB-decision also fueling the Dollar rally. The pair is still stuck below the strong resistance zone near the 115 level. U.S. Initial Jobless Claims were in line with expectations, as the indicator remains on a historically low level around 250,000. The strong number suggests that the FED will likely raise its benchmark rate next week.
Our assessment: USD/JPY is still inside a strong short-term uptrend before the Fed meeting. Strong support is still found near the 111.25 level, with the 200-day Moving Average being at 106.50.
