For the 24 hours to 23:00 GMT, the USD declined 3.23% against the JPY and closed at 106.59.
In the Asian session, at GMT0300, the pair is trading at 106.69, with the USD trading 0.09% higher against the JPY from yesterday’s close.
Overnight data showed that Japan’s retail trade fell 4.6% on an annual basis in March, driven by low demand for general merchandise and clothing as well as department store sales and less than market expectations for a drop of 4.7%. In the prior month, retail sales had recorded a revised rise of 1.6%. Additionally, the preliminary industrial production dropped 3.7% on a monthly basis in March, less than market consensus for a drop of 5.2%. In the previous month, industrial production had recorded a drop of 0.3%.
The pair is expected to find support at 106.41, and a fall through could take it to the next support level of 106.12. The pair is expected to find its first resistance at 106.93, and a rise through could take it to the next resistance level of 107.16.
Moving ahead, traders would keep an eye on Japan’s Jibun Bank manufacturing PMI for April, slated to release overnight.
The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.