USD/JPY: Japanese yen trading a tad lower in the Asian session


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD rose 0.16% against the JPY and closed at 110.66.

In the Asian session, at GMT0300, the pair is trading at 110.68, with the USD trading marginally higher against the JPY from yesterday’s close.

Overnight data showed that in Japan, household spending dropped of 3.9% on an annual basis in May, more than market expectations for a drop of 1.5%. Household spending had declined 1.3% in the previous month. On the contrary, labour cash earnings rose 2.1% on a yearly basis in May, higher than market expectations for an advance of 0.9%. Labour cash earnings had risen 0.8% in the prior month.

The pair is expected to find support at 110.40, and a fall through could take it to the next support level of 110.11. The pair is expected to find its first resistance at 110.86, and a rise through could take it to the next resistance level of 111.03.

Going forward, traders would keep an eye on Japan’s flash leading index and coincident index, both for May, due to be released in a while.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

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