USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 0.15% against the JPY and closed at 111.71.
In the Asian session, at GMT0400, the pair is trading at 111.72, with the USD trading a tad higher against the JPY from yesterday’s close.
The pair is expected to find support at 111.56, and a fall through could take it to the next support level of 111.40. The pair is expected to find its first resistance at 111.90, and a rise through could take it to the next resistance level of 112.08.
Early morning data indicate that Japan’s preliminary coincident index fell to a level of 97.9 in January, compared to market anticipations for a drop to a level of 98.9. In the prior month, the index had registered a reading of 101.8. Moreover, the nation’s flash leading economic index declined to a level of 95.9 in January, more than market expectations for a fall to a level of 96.1. In the preceding month, the index had registered a reading of 97.5.
Looking ahead, investors would await Japan’s 4Q gross domestic product and trade balance data for January, slated to release overnight.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
