For the 24 hours to 23:00 GMT, the USD declined 1.90% against the JPY and closed at 108.06.
In the Asian session, at GMT0300, the pair is trading at 108.48, with the USD trading 0.39% higher against the JPY from yesterday’s close.
Overnight data showed that Japan’s unemployment rate remained steady at 2.4% in February, in line with market expectations. Meanwhile, retail trade unexpectedly rose 1.7% on an annual basis in February, defying market expectations for a decline of 1.2% and compared to a drop of 0.4% in the earlier month. Meanwhile, the preliminary industrial production fell 4.7% on a yearly basis in February, less than market expectations for a fall of 5.5%. In the previous month, industrial production had recorded a drop of 2.3%.
The pair is expected to find support at 107.49, and a fall through could take it to the next support level of 106.51. The pair is expected to find its first resistance at 109.09, and a rise through could take it to the next resistance level of 109.71.
Moving forward, market participants would keep a watch on Japan’s construction orders and housing starts, both for February, slated to release in a few hours.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.