James Bullard, President of the Federal Reserve Bank of St. Louis, stated that there are continued signs that the U.S. economy is recovering.
Bullard pointed out that non-farm payrolls have increased in at least five of the past six months, and this trend is expected to continue from this spring through the summer. Bullard also noted that the situation in Greece should not affect U.S. monetary policy. Although the U.S. faces certain risks due to the Greek debt crisis, these risks are not significant.
Meanwhile, data released by the U.S. Department of Commerce showed that the U.S. trade deficit in March was $40.42 billion, reaching its highest level since December 2008; the U.S. trade deficit for the first quarter rose to $116.8 billion. The surge in the trade deficit puts pressure on the U.S. economic recovery.
The USD/JPY opened at the 93.19 level during the New York session. The exchange rate fell slightly during the early trading session, touching an intraday low of 92.82. During the afternoon session, the exchange rate gradually rebounded and refreshed its intraday high at the 93.27 level. Subsequently, the exchange rate consolidated within a narrow range around the 93.20 level until the close.
From a technical perspective, the USD/JPY has risen above the 40-day moving average, the KDJ indicator is extending upward, and the green momentum bars of the MACD indicator are shrinking. If the exchange rate effectively breaks through the 93.60 level, it will open up upside potential toward the 95.10 level. However, if the exchange rate falls below the 92.10 level, the downside target will point to the 90.00 mark.