For the 24 hours to 23:00 GMT, the USD declined 0.59% against the JPY and closed at 108.73.
In the Asian session, at GMT0400, the pair is trading at 108.97, with the USD trading 0.22% higher against the JPY from yesterday’s close.
Earlier today, data showed that Japan’s tertiary industry index surprisingly fell 0.2% MoM in December, defying market expectations for an advance of 0.2%. In the prior month, the index had risen 1.1%.
The pair is expected to find support at 108.39, and a fall through could take it to the next support level of 107.8. The pair is expected to find its first resistance at 109.67, and a rise through could take it to the next resistance level of 110.36.
Looking forward, traders would keep a close watch on Japan’s 4Q GDP data, the sole important release next week.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.