USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.94% against the JPY and closed at 110.11, after the US Federal Reserve’s April monetary policy meeting minutes indicated that a rate hike in June was on the table.
In the Asian session, at GMT0300, the pair is trading at 109.99, with the USD trading 0.11% lower from yesterday’s close.
Overnight data showed that Japan’s machinery orders surprisingly rebounded by 5.5% MoM in March, compared to market expectations for a fall of 2.0%. In the previous month, machinery orders had dropped 9.2%. Further, the nation’s housing loans advanced by 1.9% YoY in 1Q 2016. In the prior quarter, housing loans had recorded a rise of 2.2%.
The pair is expected to find support at 109.22, and a fall through could take it to the next support level of 108.46. The pair is expected to find its first resistance at 110.51, and a rise through could take it to the next resistance level of 111.04.
Moving ahead, investors will look forward to Japan’s final machine tool orders data for April, scheduled to release in a few hours.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
