USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 0.31% against the JPY and closed at 109.76.
In the Asian session, at GMT0300, the pair is trading at 109.84, with the USD trading 0.07% higher against the JPY from yesterday’s close.
The Japanese Yen lost ground, after data showed Japan’s economy expanded at a slower pace than initially estimated in the first three months of 2017.
Overnight data indicated that Japan’s final gross domestic product (GDP) rose by 0.3% QoQ in 1Q 2017, less than market expectations for a rise of 0.6%. The preliminary figures had indicated a rise of 0.5%. In the previous quarter, GDP had registered a similar rise. Also, the nation’s (BOP basis) trade surplus narrowed less-than-expected to a level of ¥553.6 billion in April, compared to market expectations of a (BOP basis) trade surplus of ¥494.0 billion. In the prior month, the nation had reported a surplus of ¥865.5 billion in the prior month.
Meanwhile, the OPEC estimated Japan’s economy to expand 1.4% in 2017, up from a 1.2% increase projected in March, and 1.0% in 2018, up from 0.8%.
The pair is expected to find support at 109.3, and a fall through could take it to the next support level of 108.77. The pair is expected to find its first resistance at 110.19, and a rise through could take it to the next resistance level of 110.55.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
