USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened slightly against the JPY and closed at 98.05. The Yen came under pressure after retail sales in Japan fell a seasonally adjusted 0.2% (MoM) in June that was well shy of forecasts for an increase of 0.8% following the 1.5% gain in May.
Yesterday, the Bank of Japan (BoJ) Governor, Haruhiko Kuroda, supported plan to raise the national sales tax, an attempt to reduce the budget deficit, stating that Japanese economy would not suffer a significant setback if the tax be doubled to 10% as planned, in two stages beginning in April.
In the Asian session, at GMT0300, the pair is trading at 98.31, with the USD trading 0.27% higher from yesterday’s close.
In economic data released this morning, industrial output in Japan slipped 3.3% (MoM) in June compared to the previous month, falling for the first time in five months. In a separate report, the unemployment rate stood at a seasonally adjusted 3.9% in June, beating forecasts for 4.0% after showing 4.1% in May.
The pair is expected to find support at 97.81, and a fall through could take it to the next support level of 97.32. The pair is expected to find its first resistance at 98.63, and a rise through could take it to the next resistance level of 98.96.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
