USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 0.7% against the JPY and closed at 113.30.
Yesterday, the Organisation for Economic Co-operation and Development (OECD), downgraded Japan’s growth outlook to 0.8% in 2016, from a previous forecast of 1.0% and the projection for 2017 was cut to 0.6% from 0.7% forecasted earlier, citing weakness in the nation’s consumer spending and a slowdown in exports.
In the Asian session, at GMT0400, the pair is trading at 112.90, with the USD trading 0.35% lower from yesterday’s close.
Early this morning, data indicated that, Japan’s all industry activity index fell more-than-anticipated by 0.9% MoM in December, following a revised fall of 1.1% in the previous month and compared to market expectations for a fall of 0.3%.
The pair is expected to find support at 112.37, and a fall through could take it to the next support level of 111.84. The pair is expected to find its first resistance at 113.77, and a rise through could take it to the next resistance level of 114.65.
Looking ahead, investors will keep a close eye on Japan’s flash Nikkei manufacturing PMI and national consumer price inflation data, set to be released next week.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
