USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 0.32% against the JPY and closed at 113.63.
In the Asian session, at GMT0400, the pair is trading at 113.26, with the USD trading 0.33% lower against the JPY from yesterday’s close.
Overnight data showed that Japan’s final gross domestic product (GDP) unexpectedly slowed 0.3% on a quarterly basis in 3Q 2016, renewing concerns about the nation’s growth prospects. Meanwhile, the preliminary figures had indicated a rise of 0.5%, following a rise of 0.2% in the prior quarter. Moreover, the nation’s (BOP basis) trade surplus narrowed more-than-estimated to a level of ¥587.6 billion in October, compared to market expectations for the nation to record a trade surplus of ¥603.0 billion and after recording a trade surplus of ¥642.4 billion in the prior month.
Earlier in the session, the nation’s Eco-Watchers survey for the current situation rose to a level of 48.6 in November, following a level of 46.2 in the prior month. Further, the survey for the future outlook edged up to a level of 49.1 in November, compared to a reading of 49.0 in the prior month.
The pair is expected to find support at 112.78, and a fall through could take it to the next support level of 112.31. The pair is expected to find its first resistance at 114.06, and a rise through could take it to the next resistance level of 114.87.
Moving ahead, Japan’s machine tool orders data, scheduled to release tomorrow, would be on investors’ radar.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
