USD/JPY: Japanese yen trading on a stronger footing this morning


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD rose 0.19% against the JPY and closed at 110.72 on Friday.

On Friday, data showed that Japan’s housing starts unexpectedly rose 1.3% on an annual basis in June, beating market expectations for a drop of 5.7%. Housing starts had recorded a gain of 0.3% in the prior month.

Separately, the nation’s consumer confidence index unexpectedly dropped to a level of 43.7 in June, defying market expectations for a steady reading. In the preceding month, the index had recorded a reading of 43.8.

In the Asian session, at GMT0300, the pair is trading at 111.01, with the USD trading 0.26% higher against the JPY from Friday’s close.

Overnight data showed that Japan’s Nikkei final manufacturing PMI climbed to a level of 53.0 in June, following a reading of 52.8 in the previous month. The preliminary figures had indicated an advance to 53.1.

The pair is expected to find support at 110.62, and a fall through could take it to the next support level of 110.23. The pair is expected to find its first resistance at 111.23, and a rise through could take it to the next resistance level of 111.45.

Amid lack of key economic releases in Japan today, investor sentiment will be determined by global macroeconomic releases.

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

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