USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 0.20% against the JPY and closed at 107.57.
On the data front, Japan’s leading economic index unexpectedly rose to 79.3 in May, defying market forecast for a drop to a level of 73.2 and compared to a level of 77.7 in the previous month. Meanwhile, the coincident index unexpectedly dropped to 74.6 in May, confounding market expectations for a rise to a level of 80.7 and compared to a reading of 80.1 in the previous month.
In the Asian session, at GMT0300, the pair is trading at 107.63, with the USD trading 0.06% higher against the JPY from yesterday’s close.
Overnight data showed that, Japan’s current account surplus widened to ¥1,176.8 billion in May, more than market expectations for a surplus of ¥1,088.2 billion and compared to a surplus of ¥262.7 billion in the previous month. On the flipside, trade deficit narrowed to ¥556.8 billion in May, compared to a deficit of ¥966.5 billion in the earlier month.
The pair is expected to find support at 107.39, and a fall through could take it to the next support level of 107.15. The pair is expected to find its first resistance at 107.83, and a rise through could take it to the next resistance level of 108.03.
Amid lack of macroeconomic releases in the Japan today, investor sentiment would be determined by global macroeconomic factors.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
