USD/JPY: Japan’s economy returns to growth in second quarter


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD rose 0.23% against the JPY and closed at 111.15.

Data indicated that Japan’s flash machine tool orders surged 13.0% on an annual basis in July, following an advance of 11.4% in the prior month.

In the Asian session, at GMT0300, the pair is trading at 110.95, with the USD trading 0.18% lower against the JPY from yesterday’s close.

Overnight data indicated that Japan’s flash annualised gross domestic product (GDP) rebounded 1.9% on quarterly basis in Q2 2018, compared to a fall of 0.6% in the previous quarter. Market participants had anticipated the GDP to climb 1.4%.

The pair is expected to find support at 110.71, and a fall through could take it to the next support level of 110.48. The pair is expected to find its first resistance at 111.18, and a rise through could take it to the next resistance level of 111.42.

Moving ahead, investors will await Japan’s industrial production and trade balance data, scheduled to release next week.

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

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