USD/JPY: Japan’s consumer confidence index unexpectedly declined in May

USDJPY

USDJPY Movement

For the 24 hours to 23:00 GMT, the USD declined 1.11% against the JPY and closed at 108.36 on Friday.

Data showed that Japan’s annualised housing starts dropped 5.7% on a yearly basis in April, more than market consensus for a fall of 0.6%. Housing starts had registered a rise of 10.0% in the prior month. Moreover, the consumer confidence index unexpectedly fell to a level of 39.4 in May, defying market expectations for an advance to a level of 40.7. In the prior month, the index had registered a level of 40.4. Further, the nation’s construction orders tumbled 19.9% on an annual basis in April, following a gain of 66.1% in the preceding month.

In the Asian session, at GMT0300, the pair is trading at 108.13, with the USD trading 0.21% lower against the JPY from Friday’s close. Overnight data showed that Japan’s final Nikkei manufacturing PMI eased to 49.8 in May, compared to a reading of 50.2 in the previous month. The preliminary figures had recorded a drop to 49.6.

The pair is expected to find support at 107.71, and a fall through could take it to the next support level of 107.30. The pair is expected to find its first resistance at 108.95, and a rise through could take it to the next resistance level of 109.78.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

This entry was posted in USD/JPY. Bookmark the permalink.

Comments are closed.