USDJPY Movement
For the 24 hours to 23:00 GMT on Friday, USD weakened 0.81% against the JPY and closed at 78.26.
In Japan, the leading index fell to a reading of 91.8 in July, from 93.2 in June. The coincident index declined to 92.8 in July, from 94.1 in June.
In the Asian session, at GMT0300, the pair is trading at 78.23, with the USD trading marginally lower from Friday’s close.
Data released this morning showed that Japan’s economy grew a revised 0.2% (QoQ) in April-June quarter, compared with a 0.3% increase in the previous quarter.
Additionally, nation’s trade balance came in at a deficit of ¥373.6 billion in July, after posting a surplus of ¥112.0 billion in June. Moreover, current account posted a surplus of posted a ¥625.4 billion in July.
The pair is expected to find support at 77.83, and a fall through could take it to the next support level of 77.42. The pair is expected to find its first resistance at 78.83, and a rise through could take it to the next resistance level of 79.42.
Trading trends in the pair today are expected to be determined by the release of Eco watchers survey and consumer confidence data in Japan.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
