For the 24 hours to 23:00 GMT, the USD declined 2.33% against the JPY and closed at 107.58.
In the Asian session, at GMT0300, the pair is trading at 107.66, with the USD trading 0.07% higher against the JPY from yesterday’s close.
Overnight data showed that Japan’s merchandise trade balance recorded an unexpected deficit of ¥930.4 billion in April, compared to a revised surplus of ¥5.4 billion in the previous month. Additionally, the Jibun Bank manufacturing PMI dropped to 38.4 in May, compared to a reading of 41.9 in the previous month. On the other hand, the Jibun Bank services PMI rose to 25.3 in May, compared to a level of 21.5 in the previous month.
The pair is expected to find support at 107.39, and a fall through could take it to the next support level of 107.13. The pair is expected to find its first resistance at 107.87, and a rise through could take it to the next resistance level of 108.09.
Looking forward, traders would keep a watch on Bank of Japan’s monetary policy statement and interest rate decision, slated to release overnight. Also, Japan’s consumer price index for April will be eyed by traders.
The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.