For the 24 hours to 23:00 GMT, the USD rose 0.48% against the JPY and closed at 112.74.
In the Asian session, at GMT0400, the pair is trading at 112.61, with the USD trading 0.12% lower against the JPY from yesterday’s close.
Overnight data indicated that Japan’s preliminary industrial production unexpectedly dropped 0.8% on a monthly basis in January, declining for the first time in six months, thus casting doubt over the health of the nation’s industrial sector. Industrial production had registered a rise of 0.7% in the prior month, whereas markets anticipated for an increase of 0.4%. Also, the nation’s large retailers’ sales recorded a more-than-expected drop of 1.1% in January, compared to a fall of 1.3% in the prior month. On the contrary, the nation’s seasonally adjusted retail trade rebounded 0.5% on a monthly basis in January, surpassing market expectations for a rise of 0.3%. In the prior month, retail trade had registered a revised drop of 1.6%.
Also, early morning data showed that Japan’s small business confidence index unexpectedly dropped to a level of 47.7 in February, defying market consensus for a rise to a level of 48.5 and following a reading of 48.3 in the prior month.
The pair is expected to find support at 112.08, and a fall through could take it to the next support level of 111.56. The pair is expected to find its first resistance at 112.98, and a rise through could take it to the next resistance level of 113.36.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.