USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.08% against the JPY and closed at 78.86, as industrial production in the US increased more-than-expected and homebuilder confidence matched market expectations.
In the US, industrial production increased 0.4% in September, after tumbling 1.4% in August. Meanwhile, the NAHB/Wells Fargo housing market index rose to 41 in October, from 40 in September. Moreover, the consumer price index rose 0.6% (MoM) in September, compared to a similar rise recorded in August.
In the Asian session, at GMT0300, the pair is trading at 78.71, with the USD trading 0.19% lower from yesterday’s close.
The pair is expected to find support at 78.56, and a fall through could take it to the next support level of 78.41. The pair is expected to find its first resistance at 78.91, and a rise through could take it to the next resistance level of 79.11.
Trading trends in the pair today are expected to be determined by the release of machine tool orders in Japan.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
