USD/JPY: Japan’s machinery orders unexpectedly surged to its highest level in a decade in November


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD declined 0.18% against the JPY and closed at 110.38.

In the Asian session, at GMT0400, the pair is trading at 110.62, with the USD trading 0.22% higher against the JPY from yesterday’s close.

Overnight data showed that Japan’s machinery orders unexpectedly jumped to a 10-year high level of 5.7% on a monthly basis in November, defying market expectation for a fall of 1.4%, thus pointing to a continued rise in investment spending. Machinery orders had registered a rise of 5.0% in the previous month.

The pair is expected to find support at 110.21, and a fall through could take it to the next support level of 109.81. The pair is expected to find its first resistance at 111, and a rise through could take it to the next resistance level of 111.39.

Looking forward, Japan’s final industrial production data for November, set to release tomorrow, will be on investors’ radar.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

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