USD/JPY: Japan’s jobless rate unexpectedly rose in October


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD declined 0.15% against the JPY and closed at 113.44.

In the Asian session, at GMT0400, the pair is trading at 113.40, with the USD trading marginally lower against the JPY from yesterday’s close.

Overnight data indicated that Japan’s unemployment rate unexpectedly advanced to 2.4% in October, defying market expectations of an unchanged reading. In the previous month, unemployment rate had registered a reading of 2.3%. Meanwhile, the nation’s flash industrial production rebounded 4.2% on a yearly basis in October, more than market expectations for a rise of 2.5%. In the previous month, industrial production had recorded a drop of 2.5%. Additionally, Japan’s consumer confidence index unexpectedly dipped to a level of 42.9 in November, compared to a reading of 43.0 in the prior month. Further, housing starts surprisingly rose 0.3% on an annual basis in October. In the preceding month, housing starts had registered a fall of 1.5%.

The pair is expected to find support at 113.21, and a fall through could take it to the next support level of 113.01. The pair is expected to find its first resistance at 113.58, and a rise through could take it to the next resistance level of 113.75.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

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