USD/JPY: Japan’s consumer confidence unexpectedly deteriorated in June


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD rose 0.89% against the JPY and closed at 113.37.

In economic news, Japan’s consumer confidence index unexpectedly dropped to a level of 43.3 in June, defying market consensus for the index to advance to a level of 43.9 and compared to a reading of 43.6 in the previous month.

In the Asian session, at GMT0300, the pair is trading at 113.25, with the USD trading 0.11% lower against the JPY from yesterday’s close.

Overnight data showed that the nation’s monetary base climbed less-than-anticipated by 17.0% YoY in June, compared to a gain of 19.4% in the previous month.

The pair is expected to find support at 112.57, and a fall through could take it to the next support level of 111.89. The pair is expected to find its first resistance at 113.70, and a rise through could take it to the next resistance level of 114.15.

Looking ahead, investors will keep a close watch on Japan’s final Nikkei services PMI for June, due to release overnight.

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

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