USD/JPY: Japanese Yen trading on a stronger footing in the morning session


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD declined 0.57% against the JPY and closed at 110.12.

The Japanese Yen gained ground, amid increased risk aversion among investors after the US President, Donald Trump promised a reprisal of fire and fury if North Korea threatens to attack the US.

On the data front, Japan’s Eco-Watchers Survey for the current situation unexpectedly dropped to a level of 49.7 in July, defying market expectations for a rise to a level of 50.2. In the previous month, the index had recorded a reading of 50.0. Further, the nation’s Eco-Watchers Survey for the future outlook surprisingly eased to a level of 50.3 in July, compared to a reading of 50.5 in the previous month, while market participants expected the index to rise to a level of 51.0.

In the Asian session, at GMT0300, the pair is trading at 109.90, with the USD trading 0.2% lower against the JPY from yesterday’s close.

The pair is expected to find support at 109.48, and a fall through could take it to the next support level of 109.07. The pair is expected to find its first resistance at 110.57, and a rise through could take it to the next resistance level of 111.25.

Ahead in the day, traders will closely monitor Japan’s flash machine tool orders for July.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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