USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.68% against the JPY and closed at 120.82.
In the Asian session, at GMT0400, the pair is trading at 121.17, with the USD trading 0.29% higher from Friday’s close.
Over the weekend, data showed that Japan’s Tankan large manufacturing index remained steady at a level of 12.0 in 4Q 2015, compared to market expectations of a drop to a level of 11.0. However, the nation’s large manufacturing outlook index unexpectedly fell to a level of 7.0 during the same period, from a reading of 10.0 in the previous quarter and against investor expectations for it to rise to a level of 11.0. At the non-manufacturing front, Japan’s Tankan non-manufacturing index remained unchanged at a level of 25.0 in 4Q 2015, compared to market expectations of a drop to a level of 23.0. On the other hand, the Tankan non-manufacturing outlook index eased unexpectedly to a reading of 18.0 during the same period, compared to a reading of 19.0 in the previous quarter. Markets were expecting the index to climb to a level of 22.0.
Early morning data showed that the final estimate of industrial production in Japan rose 1.4% MoM in October, after increasing by 1.1% in the previous month. The preliminary figures had also recorded a rise of 1.4%. Moreover, the nation’s tertiary industry index advanced more-than-expected by 0.9% in October against market expectations for an advance of 0.5%. The index had registered a drop of 0.4% in the previous month.
The pair is expected to find support at 120.42, and a fall through could take it to the next support level of 119.67. The pair is expected to find its first resistance at 122.08, and a rise through could take it to the next resistance level of 122.99.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
