For the 24 hours to 23:00 GMT, the USD slightly rose against the JPY and closed at 109.37.
In the Asian session, at GMT0400, the pair is trading at 109.37, with the USD trading flat against the JPY from yesterday’s close.
Overnight data revealed that Japan’s trade surplus (BOP basis) widened more-than-expected to ¥538.9 billion in December, compared to a surplus of ¥181.0 billion in the prior month. Investors had envisaged the nation’s trade surplus to widen to ¥520.4 billion.
Early morning data showed that the nation’s Eco-Watchers Survey for the current situation eased to a level of 49.9 in January, more than market expectations for a fall to a level of 53.7. The index had registered a level of 53.9 in the prior month. Moreover, the nation’s Eco-Watchers Survey for the future outlook recorded an unexpected drop to a level of 52.4 in January, confounding market anticipations for a rise to a level of 53.6 and compared to a level of 52.7 recorded in the previous month.
The pair is expected to find support at 108.96, and a fall through could take it to the next support level of 108.55. The pair is expected to find its first resistance at 109.74, and a rise through could take it to the next resistance level of 110.11.
Looking forward, Japan’s tertiary industry index for December, set to release in the early hours of tomorrow, will be on investors’ radar.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.