USDJPY Movement
On Friday, the USD weakened 0.65% against the JPY and closed at 98.28, as tension over the US budget talks weighed on investors’ sentiments.
In the Asian session, at GMT0300, the pair is trading at 97.99, with the USD trading 0.30% lower from Friday’s close. Earlier today, a report showed that Nomura/ JMMA manufacturing PMI for Japan edged up to a reading of 52.5 in September, following a reading of 52.2 seen in the previous month. Separately, a government report revealed that industrial production in the nation declined 0.7% (MoM) during August, more than analysts’ call for a 0.4% drop and compared to a 3.4% increase recorded in the earlier month. Another official data showed that the nation’s retail trade rose 1.1% (YoY) during August, at par with market expectations and compared to a 0.3% fall seen in the previous month.
The pair is expected to find support at 97.50, and a fall through could take it to the next support level of 97.00. The pair is expected to find its first resistance at 98.66, and a rise through could take it to the next resistance level of 99.33.
Investors await the release of Japan’s housing starts and unemployment data, due later today for further direction in Japanese Yen.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
