USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 1.05% against the JPY and closed at 104.20, after upbeat retail sales data in the US for the month of December eased concerns that economic growth might be slowing. Moreover, the US business inventories 0.4% in November, following a strong 0.8% in the previous month, suggesting that consumers will increase spending in the months ahead.
In the Asian session, at GMT0400, the pair is trading at 104.42, with the USD trading 0.21% higher from yesterday’s close.
On the macro front, the Bank of Japan (BoJ) reported that the M3 money supply in Japan rose 3.4% (YoY) in December, in line with expectations, and compared to a revised 3.5% increase recorded in the previous month. Additionally, on an annual basis, money supply M2+CD in Japan advanced 4.2% in December, following a revised increase of 4.4% recorded in the preceding month.
The pair is expected to find support at 103.60, and a fall through could take it to the next support level of 102.79. The pair is expected to find its first resistance at 104.86, and a rise through could take it to the next resistance level of 105.30.
Later today, the machinery orders from Japan would be on traders’ radar along with the Tertiary Industry Index. Meanwhile, other important economic releases from the US would also determine trading trends for the pair.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
