USD/JPY (current price: 113.39)
The Japanese Trade Balance was much better than expected in December, coming in at 0.36 trillion. The better than expected indicator helped the Yen throughout the day, despite the rebound in global risk assets on Wednesday. The U.S. Housing Price Index was slightly above the consensus estimate, with a reading of 0.5%. The pair remained above the recent lows at 112.50, after a bullish day, as the U.S. Dollar continued to settle down following a volatile period.
Our assessment: The pair is still within a declining short-term pattern despite the recent bounce. The 115 resistance and the 111.25 could remain in the focus of traders.
