USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.16% against the JPY and closed at 123.39.
In the Asian session, at GMT0400, the pair is trading at 123.14, with the USD trading 0.2% lower from yesterday’s close.
Overnight data showed that Japan’s final GDP unexpectedly rose 0.3% in 3Q 2015, on the back of robust business investments, defying market expectations for a flat reading. The nation’s GDP had dropped by a revised 0.2% in the previous quarter. The preliminary figures too had recorded a fall of 0.2%.
Early this morning, Japan’s Eco Watchers survey for current conditions surprisingly fell to a level of 46.1 in November, from a reading of 48.2 in the previous month, and against investor expectations for it to rise to a level of 48.5. Additionally, the nation’s outlook survey declined to a level of 48.2 during the same month, compared to market expectations for a reading of 49.2, and after reaching a level of 49.1 in October.
The pair is expected to find support at 122.96, and a fall through could take it to the next support level of 122.78. The pair is expected to find its first resistance at 123.41, and a rise through could take it to the next resistance level of 123.67.
Going ahead, investors will look forward to Japan’s flash machine tool orders data for November, scheduled to be released tomorrow morning.
The currency pair is trading below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
