USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 0.7% against the JPY and closed at 113.33.
In the Asian session, at GMT0400, the pair is trading at 113.93, with the USD trading 0.53% higher from Friday’s close.
Over the weekend, data showed that, Japan’s preliminary Q4 GDP contracted more-than-anticipated by 0.4%, suggesting that more stimulus by the central bank could be on the way to lift the country out of stagnation. Meanwhile, markets expected it to decline by 0.2%, compared to an expansion of 0.3% in the previous quarter.
Earlier today, data indicated that, Japan’s final estimate of industrial production fell by 1.7% MoM in December, compared to a preliminary reading of a fall of 1.4%.
The pair is expected to find support at 112.40, and a fall through could take it to the next support level of 110.88. The pair is expected to find its first resistance at 114.71, and a rise through could take it to the next resistance level of 115.49.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
