USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose slightly against the JPY and closed at 111.37.
On the data front, Japan’s flash leading economic index dropped to a level of 105.2 in June, while market participants had expected for a fall to a level of 105.3. In the prior month, the leading index had recorded a level of 106.90. Moreover, the nation’s preliminary coincident index eased to 116.30 in Japan, compared to market expectations for a drop to a level of 116.20. In the previous month, the coincident index had recorded a reading of 116.80.
In the Asian session, at GMT0300, the pair is trading at 111.36, with the USD trading a tad lower against the JPY from yesterday’s close.
Overnight data showed that Japan’s posted a trade surplus (BOP basis) of ¥820.5 billion in June, undershooting market consensus to record a surplus of ¥822.0 billion. In the prior month the nation had registered a trade deficit of ¥303.8 billion.
The pair is expected to find support at 111.07, and a fall through could take it to the next support level of 110.79. The pair is expected to find its first resistance at 111.56, and a rise through could take it to the next resistance level of 111.77.
Moving ahead, investors will await the release of Japan’s machine orders for July, set to release overnight.
The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.
