USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 0.16% against the JPY and closed at 109.56.
On the data front, Japan’s construction orders fell 1.2% on a yearly basis in November, following a rise of 6.4% in the prior month. Moreover, the nation’s housing starts dropped 12.7% on an annual basis in November, more than market expectations for a fall of 8.1%. In the previous month, housing starts had recorded a decline of 7.4%.
In the Asian session, at GMT0400, the pair is trading at 109.46, with the USD trading 0.09% lower against the JPY from yesterday’s close.
Overnight data showed that Japan’s unemployment rate unexpectedly fell to 2.2% in November, declining for the first time in 4 months and defying market anticipations for a steady reading. In the prior month, unemployment rate stood at 2.4%. Meanwhile, the nation’s retail trade eased for the second consecutive month by 2.1% on an annual basis in November, higher than market expectations for a fall of 1.7%. In the previous month, retail trade had recorded a revised fall of 7.0%. Further, the preliminary industrial production surprisingly dropped 8.1% on a yearly basis in November, defying market consensus for an advance of 0.9%. In the prior month, industrial production had registered a decrease of 7.7%.
The pair is expected to find support at 109.37, and a fall through could take it to the next support level of 109.27. The pair is expected to find its first resistance at 109.62, and a rise through could take it to the next resistance level of 109.77.
The currency pair is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.
