USD/JPY: Japan’s economy surprisingly contracted in the first three months of 2018


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD rose 0.49% against the JPY and closed at 110.25.

In the Asian session, at GMT0300, the pair is trading at 110.26, with the USD trading slightly higher against the JPY from yesterday’s close.

Data released overnight showed that Japan’s flash gross domestic product (GDP) unexpectedly fell 0.2% on a quarterly basis in the first quarter of 2018, compared to a revised rise of 0.1% in the previous quarter, while markets were anticipating the nation’s GDP to remain flat.

Earlier today, Japan’s final industrial production rose more than initially estimated by 1.4% MoM in March, while the preliminary figures had indicated a rise of 1.2%. In the previous month, industrial production had climbed by a revised 2.0%.

The pair is expected to find support at 109.82, and a fall through could take it to the next support level of 109.39. The pair is expected to find its first resistance at 110.57, and a rise through could take it to the next resistance level of 110.89.

Moving ahead, traders would await Japan’s machinery orders for March, set 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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