For the 24 hours to 23:00 GMT, the USD rose 0.56% against the JPY and closed at 114.38.
In the Asian session, at GMT0400, the pair is trading at 114.11, with the USD trading 0.24% lower against the JPY from yesterday’s close.
Overnight data indicated that Japan’s national consumer price index (CPI) advanced 0.4% on an annual basis in January, at par with market expectations and compared to a rise of 0.3% in the previous month. Additionally, the nation’s unemployment rate dropped to 3.0% in January, meeting market expectations and after recording a reading of 3.1% in the previous month. On the contrary, the nation’s household spending slid more-than-expected by 1.2% YoY in January, compared to a fall of 0.3% in the previous month.
Separately, early morning data showed that Japan’s Nikkei services PMI eased to a level of 51.3 in February, compared to a level of 51.9 in the preceding month. Meanwhile, the nation’s consumer confidence index unexpectedly fell to a level of 43.1 in February, defying market consensus of a rise to a level of 43.5 and following a reading of 43.2 in the prior month.
The pair is expected to find support at 113.81, and a fall through could take it to the next support level of 113.51. The pair is expected to find its first resistance at 114.50, and a rise through could take it to the next resistance level of 114.89.
Looking ahead, traders would await the release of Japan’s 1Q GDP, trade balance and Eco-Watchers survey data, all due next week.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.