USD/JPY: Japan’s industrial production dropped in December


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD declined 0.33% against the JPY and closed at 109.04.

In the Asian session, at GMT0400, the pair is trading at 108.87, with the USD trading 0.16%

lower against the JPY from yesterday’s close.

Overnight data revealed that Japan’s flash industrial production declined by 1.9% on an annual basis in December, less than market expectations for a drop of 2.3%. In the prior month, industrial production had recorded a rise of 1.5%. Early morning data showed that the nation’s housing starts climbed 2.1% on a yearly basis in December, compared to a drop of 0.6% in the prior month. Market participants had expected housing starts to rise 2.0%.

The pair is expected to find support at 108.51, and a fall through could take it to the next support level of 108.16. The pair is expected to find its first resistance at 109.48, and a rise through could take it to the next resistance level of 110.10.

Looking ahead, investors would closely monitor Japan’s jobless rate for December and the Nikkei manufacturing PMI for January, slated to release overnight.

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

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