USDJPY dips below 144 on stronger Japan trade data

• Yen gains for 7th straight day
• Japan posts surprise trade deficit in April
• USDJPY trades below key moving averages
• RSI at 44.5 shows weakening momentum
• MACD suggests bearish bias to continue

The Japanese yen strengthened past 143 per dollar on Wednesday, marking its seventh consecutive session of gains, as investors responded to Japan’s latest trade data and looked ahead to key developments from the G7 meeting.

April’s trade deficit narrowed sharply, surprising markets that anticipated a surplus.

• Balance of Trade: -115.8 billion JPY – actual vs +227.1 billion JPY – expected; 559.4 billion JPY – previous

Technical Analysis

At the time of writing, USDJPY was trading at 143.644, slightly lower than its opening at 144.531, indicating mild bearish sentiment. The pair traded within a narrow range, with a high of 144.559 and a low of 143.456.

Technical indicators show bearish undertones. The pair remains below its 21-day moving average (144.55), 50-day MA (145.92), and significantly below the 100-day MA (149.57), indicating a continued downward trend. The Relative Strength Index (RSI) at 44.51 remains in neutral territory, showing no immediate oversold conditions but highlighting weakening momentum.

The MACD (12,26,9) is negative at -0.0469, while the signal line is at 0.0572, suggesting bearish momentum may persist. The MACD’s position below the signal line supports the short-term downside bias.

Unless USDJPY regains the 21-day MA level, the outlook remains cautious.

A decisive break below 143.45 could trigger further selling, while resistance near 144.55 and 145.92 must be reclaimed for any bullish reversal.