USD/JPY: Japan’s Eco Watchers current situation and future outlook indices, both dropped surprisingly in March


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD declined 0.65% against the JPY and closed at 110.73.

In economic news, Japan’s Eco-watchers survey for current situation index surprisingly dropped to a level of 47.4 in March, defying market consensus for a rise to a level of 49.8, highlighting that investors are getting more pessimistic over the health of the nation’s economy. The index registered a level of 48.6 in the previous month. Moreover, the nation’s Eco-watchers survey for future outlook index unexpectedly declined to a level of 48.1 in March, compared to a level of 50.6 in the preceding month and compared to market expectations for a rise to a level of 50.7.

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

The pair is expected to find support at 110.34, and a fall through could take it to the next support level of 110. The pair is expected to find its first resistance at 111.28, and a rise through could take it to the next resistance level of 111.88.

Looking ahead, market participants focus on Japan’s flash machine tool orders for March, slated to release in some time.

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

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