USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 0.46% against the JPY and closed at 109.26.
On the data front, Japan’s preliminary leading economic index fell to a level of 96.30 in March, falling to its lowest level since mid-2016 and in line with market expectations. In the previous month, the index had registered a level of 97.1. Moreover, the nation’s flash coincident index declined to a level of 99.6 in March, amid signs that the economy might be in recession due to the effects of escalating US-China trade wars. In the prior month, the index has recorded a level of 100.4, while market participants had envisaged the index to record a drop to a level of 99.6.
In the Asian session, at GMT0300, the pair is trading at 109.59, with the USD trading 0.30% higher against the JPY from yesterday’s close.
Overnight data indicated that Japan’s trade surplus (BOP basis) widened to ¥700.1 billion in March, compared to a surplus of ¥489.2 billion in the previous month. Markets had anticipated the nation to record a surplus of ¥838.9 billion.
The pair is expected to find support at 109.14, and a fall through could take it to the next support level of 108.68. The pair is expected to find its first resistance at 109.93, and a rise through could take it to the next resistance level of 110.26.
The currency pair is trading above its 20 Hr and moving average and showing convergence with its 50 Hr moving average.
