USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 0.27% against the JPY and closed at 110.97 on Friday.
On the data front, Japan’s preliminary leading economic index eased to a level of 103.5 in July, meeting market expectations. In the prior month, the index had recorded a level of 104.7. Additionally, the nation’s flash coincident index dropped to a level of 116.3 in July, compared to market consensus for a decline to a level of 115.7. In the previous month, the index had registered a reading of 116.4.
In the Asian session, at GMT0300, the pair is trading at 110.99, with the USD trading a tad higher against the JPY from Friday’s close.
Overnight data showed that, Japan’s final annualised gross domestic product (GDP) rebounded 3.0% in 2Q 2018, rising at its strongest pace since 2016 and compared to a revised drop of 0.9% in the previous quarter. The preliminary figures had indicated a rise of 1.9%, while market participants had anticipated the GDP to climb 2.6%.
On the other hand, Japan posted a trade deficit (BOP basis) of ¥1.0 billion in July, compared to market expectations for a deficit of ¥47.7 billion. In the preceding month, the nation had recorded a surplus of ¥820.5 billion.
The pair is expected to find support at 110.58, and a fall through could take it to the next support level of 110.18. The pair is expected to find its first resistance at 111.32, and a rise through could take it to the next resistance level of 111.66.
In absence of key economic releases in Japan today, investor sentiment would be determined by global macroeconomic events.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
