USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 1.46% against the JPY and closed at 109.48.
In the Asian session, at GMT0400, the pair is trading at 109.54, with the USD trading 0.05% higher against the JPY from yesterday’s close.
Early morning data showed that Japan’s coincident index eased to a level of 95.1 in November, compared to a reading of 95.3 in the prior month. Market participants had envisaged the index to record a drop to a level of 93.2. Moreover, the nation’s preliminary leading economic index declined to a level of 90.9 in November, more than market expectations for a fall to a level of 90.6. In the previous month, the index had recorded a level of 91.6.
The pair is expected to find support at 109.27, and a fall through could take it to the next support level of 108.99. The pair is expected to find its first resistance at 109.70, and a rise through could take it to the next resistance level of 109.85.
Looking forward, investors would closely monitor Japan’s trade balance data, machine tool orders and producer price index, all set to release next week.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
