USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.36% against the JPY and closed at 118.64.
In economic news, Japan’s Eco watchers survey for the current situation advanced to 45.60 in January, while markets were expecting it to rise to 45.80. On the other hand, the nation’s Eco watchers survey for the future outlook climbed unexpectedly to a level of 50.00 in January, compared to market expectations of a drop to 45.80. The future outlook had recorded a reading of 46.70 in the previous month.
In the Asian session, at GMT0400, the pair is trading at 118.46, with the USD trading 0.15% lower from yesterday’s close.
Overnight data showed that Japan’s tertiary industry index unexpectedly fell 0.30% on a monthly basis in January, lower than market expectations which called for an unchanged reading. The index had registered a rise of 0.20% in the previous month. Meanwhile, housing loans in the nation climbed 2.50% on an annual basis, in 4Q 2014, compared to an advance of 2.80% registered in prior quarter.
The pair is expected to find support at 118.18, and a fall through could take it to the next support level of 117.91. The pair is expected to find its first resistance at 118.88, and a rise through could take it to the next resistance level of 119.3.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
