USDJPY Movement
On Friday, the USD weakened 0.32% against the JPY and closed at 118.78.
In the Asian session, at GMT0400, the pair is trading at 118.44, with the USD trading 0.29% lower from Friday’s close.
Overnight data showed that Japan’s economy came out of recession to grow at 0.6% QoQ in 4Q 2014, after shrinking by a revised 0.6% in the prior quarter. Market expectations were for it to expand 0.9%, thus showing a fragile recovery for the world’s third biggest economy.
Data just released indicated that industrial production in Japan advanced 0.80% MoM in December, compared to a fall of 0.50% in the previous month.
The pair is expected to find support at 118.13, and a fall through could take it to the next support level of 117.83. The pair is expected to find its first resistance at 118.98, and a rise through could take it to the next resistance level of 119.52.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
