Bad export figures for Japan

Price action during US session:

EURUSD      -1.14%

EURJPY         -0.83%

USDJPY          -0.43%

 

Economic events During US session

1.  Chinese white paper on a new global reserve currency with proposal of ditching the US Dollar and  the tacit IMF support for at least discussing the idea at the upcoming G-20

2. US equities give back partial gains, falls 2.1% with bulk of losses coming late.  

The market was  unable to take advantage of the bearish dollar news with markets seems to take profit  from the recent gains of prices  uptrend. Euros was pressured  by the US dollar and the Yen, but USDJPY was sluggish and  quite volatile.

For  early morning Asian session  trade, Japan  merchandise trade balance report and the Nikkei sentiment will impose a bearing for USDJPY.

USD JPY opened the day (Australian opened) above the daily pivot point and moved up to  24:00 GMT. Prices met a resistance level of 76.4% retracement  with a reversal  engulfing candle. The reversal is expected to move prices below the pivot point of 97.78 since trade data was reported below expectation which is bad for the Nikkie but not the Yen. Nikkei opened higher but after the trade data report it went sliding.  

Japan's exports dived a record 49.4 percent in February from a year earlier, as global demand for Japanese goods such as cars and electronics evaporates amid a deepening financial crisis.

It was the fifth straight month of annual drops in exports, following the previous record fall of 45.7 percent in January and larger than the median forecasts from economists for a 47.1 percent drop.