USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.40% against the JPY and closed at 112.72.
In the Asian session, at GMT0400, the pair is trading at 112.55, with the USD trading 0.15% lower from yesterday’s close.
Overnight data showed that Japan posted a merchandise (total) trade surplus of ¥242.8 billion in February, missing forecasts for a surplus of ¥395.1 billion and following a ¥648.8 billion deficit in the previous month. Another set of data showed that exports declined more-than-expected by 4.0%, falling for the fifth consecutive month, pointing towards fresh sign of weakness in the world’s third-largest economy. Meanwhile, imports fell less-than-expected by 14.2%, on an annual basis in February, compared to a revised drop of 17.8% in the preceding month.
The pair is expected to find support at 111.98, and a fall through could take it to the next support level of 111.41. The pair is expected to find its first resistance at 113.47, and a rise through could take it to the next resistance level of 114.40.
Going ahead, investors await the release of the BoJ’s monetary policy meeting minutes, scheduled to release overnight.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
