Japan's trade surplus rose to 663.72 billion yen ($ 6.11 billion) in March from 7.49 billion yen in the same month last year, it was the largest trade surplus since last December, as exports rose more than imports.
Japan's exports rose by 16.1% in March compared to last year to its highest level in 3 years, while imports grew by 5.7% to reach their highest level in 14 months. Looking at the first three months of 2021, the trade surplus amounted to 554.22 billion yen compared to a deficit of 201.01 billion Yen in the same period in 2020.
The Japanese yen rose strongly against the US dollar in the wake of those data, also benefiting from the weakness in the dollar, as USDJPY fell to its lowest levels since March 5, around the 108 levels, which is an important support at the SMA 50, we could see some correction from these levels to retest the broken support at 108.38.
Trading below the 108 levels, will open the door for a continuation of decline, targeting the level of 107.50.