USDJPY Movement
For the 24 hours to 23:00 GMT on Friday, USD weakened 0.42% against the JPY and closed at 78.28
The Yen rose after industrial output in Japan rose 0.4% (MoM) in June, against the market expectation of 0.1% drop. However, the capacity utilization in the nation dropped 2.3% in June, compared to a 2.2% decline in May.
In the Asian session, at GMT0300, the pair is trading at 78.34, with the USD trading 0.08% higher from Friday’s close.
The Yen came under pressure this morning as data showed that Japanese economy grew 0.3% (QoQ) in the April-June quarter, less than the analyst forecast of 0.6% growth and slowing sharply from a revised 1.3% expansion in the previous quarter.
The pair is expected to find support at 78.12, and a fall through could take it to the next support level of 77.91. The pair is expected to find its first resistance at 78.59, and a rise through could take it to the next resistance level of 78.85.
Trading trends in the pair today are expected to be determined by Bank of Japan (BoJ) minutes of July meeting.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
