USD/JPY: Japan’s unemployment rate surprisingly dipped in August


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD rose 0.56% against the JPY and closed at 113.40.

In the Asian session, at GMT0300, the pair is trading at 113.56, with the USD trading 0.14%

higher against the JPY from yesterday’s close.

On the macro front, Japan’s retail trade climbed 2.7% on an annual basis in August, compared to an advance of 1.5% in the previous month. Market participants had expected the retail trade to climb 2.0%. Moreover, the nation’s flash industrial production rebounded 0.7% on a monthly basis in August, less than market anticipations for a rise of 1.4%. Industrial production had dropped 0.10% in the prior month. Additionally, unemployment rate unexpectedly slid to 2.4% in August, defying market consensus for an unchanged reading. In the preceding month, unemployment rate had recorded a reading of 2.5%.

On the contrary, Japan’s large retailer’s sales surprisingly fell 0.1% on a monthly basis in August, defying market expectations for an advance of 0.3%. In the previous month, large retailer’s sales had recorded a drop of 1.6%.

The pair is expected to find support at 112.87, and a fall through could take it to the next support level of 112.18. The pair is expected to find its first resistance at 113.94, and a rise through could take it to the next resistance level of 114.32.

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

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