USDJPY Movement
For the 24 hours to 23:00 GMT, USD weakened 1.25% against the JPY and closed at 79.38, amid a stronger than expected Japanese industrial production data, coupled with the weaker- than-expected economic reports from the US.
The Yen rose after industrial output in Japan climbed 1.3% (MoM) in March, compared to a revised 1.0% rise in February. Meanwhile, in the US, the Federal Reserve Bank of Philadelphia indicated that its manufacturing index dropped to -5.8 in May from the previous months reading of 8.5. Analysts had expected the index to rise to 10.0 in May. Additionally, the US Conference Board’s leading economic index unexpectedly showed a modest decrease in the month of April, after rising for six consecutive months.
In the Asian session, at GMT0300, the pair is trading at 79.42, with the USD trading 0.05% higher from yesterday’s close.
The pair is expected to find support at 78.91, and a fall through could take it to the next support level of 78.41. The pair is expected to find its first resistance at 80.15, and a rise through could take it to the next resistance level of 80.88.
Trading trends in the pair today are expected to be determined by the release of Nationwide department store sales in Japan.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
