USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 0.35% against the JPY and closed at 106.10.
In the Asian session, at GMT0400, the pair is trading at 106.06, with the USD trading slightly lower against the JPY from yesterday’s close.
Overnight data showed that final reading on Japan’s GDP expanded more than initially estimated by 0.4% on a quarterly basis in the final three months of 2017, while the preliminary figures had indicated an advance of 0.1%. The nation’s GDP had advanced 0.6% in the prior quarter.
Other data indicated that the nation posted a less-than-expected (BOP basis) trade deficit of ¥666.6 billion in January, following a surplus of ¥538.9 billion in the previous month. Markets were anticipating the nation to register a (BOP basis) trade deficit of ¥695.5 billion.
Earlier in the session, data revealed that Japan’s Eco Watchers Survey for the current situation recorded an unexpected drop to a level of 48.6 in February, confounding market expectations for a rise to a level of 50.5. The index had registered a reading of 49.9 in the prior month. Furthermore, the nation’s Eco Watchers Survey for the future outlook declined more-than-anticipated to a level of 51.4 in February, against market consensus for a fall to a level of 51.7. In the prior month, the index had registered a reading of 52.4.
The pair is expected to find support at 105.64, and a fall through could take it to the next support level of 105.22. The pair is expected to find its first resistance at 106.35, and a rise through could take it to the next resistance level of 106.64.
Moving ahead, the Bank of Japan’s interest rate decision, due tomorrow, will keep investors on their toes. The central bank is anticipated to stand pat on monetary policy.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
