USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.22% against the JPY and closed at 107.28.
In economic news, Japan’s preliminary leading economic index in Japan rose less-than-expected to a level of 100.5 in April, from a reading of 99.3 in the previous month. Moreover, the nation’s flash coincident index climbed to a level of 112.2 in April, lower than market expectations of a rise to a level of 112.9. In the previous month, the coincident index had recorded a reading of 111.1.
In the Asian session, at GMT0300, the pair is trading at 106.89, with the USD trading 0.36% lower against the JPY from yesterday’s close.
Early this morning, data showed that, Japan’s final annualised gross domestic product (GDP) rose in line with investor expectations by 1.9% in 1Q 2016, as the domestic economy showed slightly more resilience in the face of a gloomy global environment. The preliminary figures had indicated a rise of 1.7%. In the previous quarter, annualised GDP had dropped by a revised 1.7%. On the other hand, the nation’s (BOP basis) trade surplus narrowed to ¥697.1 billion in April, following a (BOP basis) trade surplus of ¥927.2 billion in the prior month. Market expectation was for the nation to record a trade surplus of ¥919.0 billion.
Separately, the World Bank projected that Japan will expand by 0.5% in 2016, a bit slower than last year.
The pair is expected to find support at 106.43, and a fall through could take it to the next support level of 105.97. The pair is expected to find its first resistance at 107.62, and a rise through could take it to the next resistance level of 108.35.
Moving ahead, investors will look forward to Japan’s Eco Watchers survey data for May, scheduled to release in some time.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
