USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 0.45% against the JPY and closed at 113.35.
In the Asian session, at GMT0400, the pair is trading at 113.02, with the USD trading 0.29% lower from yesterday’s close.
Overnight data indicated that, Japan’s final Q4 GDP contracted by 0.3% QoQ in 4Q 2015, lower than market expectations for a contraction of 0.4% and compared to the preliminary print of a fall of 0.4%. At the annualized level, GDP eased 1.1% in 4Q 2015, less than market expectations for a drop of 1.6%. The preliminary figures had recorded a fall of 1.4%. Additionally, the nation’s BOP basis trade balance posted a less-than-anticipated deficit of ¥411.0 billion in January, compared to a surplus of ¥188.7 billion in the previous month, while markets expected the nation to record a trade deficit of ¥530.0 billion.
Early this morning, data showed that, Japan’s consumer confidence index declined more-than-expected to a level of 40.1 in February, after recording a reading of 42.5 in the previous month and compared to market expectations for a fall to a level of 42.2.
The pair is expected to find support at 112.57, and a fall through could take it to the next support level of 112.12. The pair is expected to find its first resistance at 113.65, and a rise through could take it to the next resistance level of 114.27.
Moving ahead, investors will look forward to Japan’s flash machine tool orders data for February, scheduled to release tomorrow.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
