USDJPY Movement
For the 24 hours to 23:00 GMT, the USD marginally strengthened against the JPY and closed at 109.09.
In the Asian session, at GMT0300, the pair is trading at 109.29, with the USD trading 0.18% higher from yesterday’s close.
Overnight data showed that Japan’s flash GDP rebounded by 0.4% QoQ in 1Q 2016, higher than market expectations for a rise of 0.1%, as solid consumer demand and higher government spending offset relatively weak business investment and sluggish exports. The GDP had dropped 0.4% in the previous quarter.
The pair is expected to find support at 108.78, and a fall through could take it to the next support level of 108.27. The pair is expected to find its first resistance at 109.72, and a rise through could take it to the next resistance level of 110.15.
Going ahead, investors will look forward to the release of Japan’s machinery orders data for March, due overnight.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
