For the 24 hours to 23:00 GMT, the USD rose 0.42% against the JPY and closed at 108.89.
In the Asian session, at GMT0300, the pair is trading at 108.90, with the USD trading a tad higher against the JPY from yesterday’s close.
Overnight data revealed that Japan’s adjusted merchandise trade surplus narrowed less-than-anticipated to a level of ¥172.2 billion in March, as growth in imports outpaced exports. The nation registered a revised surplus of ¥609.0 billion in the previous month. Additionally, the nation’s exports grew at the fastest pace in more than two years, after it jumped more-than-expected by 12.0% on an annual basis in March, compared to an advance of 11.3% in the prior month. Moreover, annual imports climbed 15.8% in March, against a rise of 1.2% in the previous month.
The pair is expected to find support at 108.50, and a fall through could take it to the next support level of 108.09. The pair is expected to find its first resistance at 109.24, and a rise through could take it to the next resistance level of 109.57.
Going ahead, traders would focus on Japan’s flash Nikkei manufacturing PMI for April, and tertiary industry index for February, slated to release in the early hours of tomorrow.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.