USD/JPY: Japan’s manufacturing sector growth eased less than initially estimated in June


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD rose 0.45% against the JPY and closed at 112.50 on Friday.

In the Asian session, at GMT0300, the pair is trading at 112.41, with the USD trading 0.08% lower against the JPY from Friday’s close.

Overnight data indicated that Japan’s final Nikkei manufacturing PMI dropped to a level of 52.4 in June, while the preliminary figures had indicated a drop to a level of 52.0. The PMI had recorded a level of 53.1 in the prior month. On the contrary, the nation’s Tankan large manufacturing index climbed more-than-anticipated to a level of 17.0 in 2Q 2017, after recording a level of 12.0 in the prior quarter. Further, the nation’s Tankan non-manufacturing index advanced to a level of 23.0 in the second quarter of 2017, meeting market expectations. The index had registered a level of 20.0 in the previous quarter.

The pair is expected to find support at 111.89, and a fall through could take it to the next support level of 111.38. The pair is expected to find its first resistance at 112.76, and a rise through could take it to the next resistance level of 113.12.

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

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