USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.19% against the JPY and closed at 103.69.
In the Asian session, at GMT0300, the pair is trading at 103.7, with the USD trading flat from yesterday’s close.
In economic news, the national consumer price index in Japan recorded a rise of 3.4% in July, on an annual basis, matching market expectations. In the previous month, the index climbed 3.6%. Additionally, the retail trade in Japan unexpectedly climbed 0.5%, on an annual basis in July, against market expectations for a fall of 0.2% and compared to a decline of 0.6% in the previous month. On the other hand, the unemployment rate in Japan surprisingly rose to a level of 3.8% in July exceeding market estimates and compared to a reading of 3.7% in the prior month. Similarly, the industrial production in Japan slid 0.9% (YoY) in July, higher than market expectations for a fall of 0.1% and after rising 3.1% in the past month. Also, household spending in July recorded a drop of 5.9% in Japan, on an annual basis, more than market expectations for a drop of 2.9%.
The pair is expected to find support at 103.53, and a fall through could take it to the next support level of 103.37. The pair is expected to find its first resistance at 103.89, and a rise through could take it to the next resistance level of 104.08.
Trading trends in the Yen today are expected to be determined by housing data, scheduled in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
