USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.59% against the JPY and closed at 123.73.
Yesterday, Japan’s small business confidence index climbed to a level of 48.1 in May from prior month’s reading of 47.4. Markets were expecting the index to advance to 48.0.
In the Asian session, at GMT0300, the pair is trading at 124.13, with the USD trading 0.32% higher from yesterday’s close.
Overnight data showed that Japan’s retail trade rose 0.4% MoM in April, lower than market expected gain of 1.1%, signalling that the nation’s economy was still weighed down by last year’s sales tax hike.
The pair is expected to find support at 123.18, and a fall through could take it to the next support level of 122.24. The pair is expected to find its first resistance at 124.67, and a rise through could take it to the next resistance level of 125.20.
Meanwhile, investors would keep a close eye on Japan’s National CPI and jobless rate data, scheduled overnight for further cues.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
