USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.08% against the JPY and closed at 77.63.
In the Asian session, at GMT0300, the pair is trading at 77.54, with the USD trading 0.12% lower from yesterday’s close.
This morning, in Japan, retail sales on a seasonally adjusted basis rose 1.5% (MoM) in August, compared to a drop of 1.5% in July. Additionally the Markit/JMMA manufacturing purchasing managers index (PMI) rose to a seasonally adjusted 48.0 in September, from 47.7 in August. Moreover, unemployment rate ticked down to 4.2% in August, falling from July’s 4.3%. However, industrial production fell 1.3% (MoM) in August, against the market expectation for a 0.5% fall. Separately, the core consumer price index was down 0.3% in August from a year earlier, the fourth straight month of decline,
The pair is expected to find support at 77.45, and a fall through could take it to the next support level of 77.35. The pair is expected to find its first resistance at 77.70, and a rise through could take it to the next resistance level of 77.85.
The pair is expected to take cues from the release of housing starts and construction orders in Japan.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
