For the 24 hours to 23:00 GMT, the USD rose 0.3% against the JPY and closed at 117.43.
On Monday, minutes of the Bank of Japan’s (BoJ) recent monetary policy meeting indicated that policy makers maintained optimism over the rate of economic recovery, citing stabilization in global consumer demand. However, board members disagreed over the volume of bonds the bank should purchase in keeping with its new program to control interest rates.
Other economic news revealed that the nation’s national consumer price index (CPI) rose 0.5% on an annual basis in November, in line with market expectations, advancing for the second consecutive month. The CPI had advanced 0.1% in the previous month. Further, the nation’s jobless rate unexpectedly rose to 3.1% in November, defying market expectations for it to record an unchanged reading of 3.0%. Also, the small business confidence index increased to a level of 48.8 in December, following a level of 48.3 in the previous month.
In the Asian session at 4:00GMT, the pair is trading at 117.56, with the USD trading 0.11% higher against the JPY from yesterday’s close.
Overnight data showed that Japan’s preliminary industrial production advanced 1.5% on a monthly basis in November, rising the most in five months, thus suggesting that activity in the world’s third-largest economy continues to gain traction. However, the reading was weaker than market expectations of a rise of 1.7%, while recording a flat reading in the prior month. Moreover, the nation’s seasonally adjusted retail trade unexpectedly climbed 0.2% MoM in November, surpassing market expectations for a drop of 0.5%. In the prior month, retail trade had advanced 2.5%. On the other hand, the nation’s large retailer’s sales declined 0.3% in November, following a fall of 1.0% in the previous month.
The pair is expected to find support at 117.24, and a fall through could take it to the next support level of 116.93. The pair is expected to find its first resistance at 117.8, and a rise through could take it to the next resistance level of 118.05.
Looking ahead, BoJ’s summary of opinions report, due to release overnight, will attract market attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
