USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 1.32% against the JPY and closed at 108.58.
In the Asian session, at GMT0300, the pair is trading at 108.45, with the USD trading 0.11% lower from yesterday’s close.
Early this morning, data indicated that total merchandise trade deficit of Japan narrowed to ¥948.5 billion in August, from a revised merchandise (total) trade deficit of ¥962.1 billion in the previous month. Markets were expecting the nation’s trade deficit to widen to ¥1,028.9 billion.
The pair is expected to find support at 107.49, and a fall through could take it to the next support level of 106.52. The pair is expected to find its first resistance at 109.06, and a rise through could take it to the next resistance level of 109.67.
Going forward, investors await Japan’s machine tool orders data, set for release in a few hours. Meanwhile, investors would also focus on the BoJ Governor Haruhiko Kuroda’s speech, scheduled later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
