USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 2.66% against the JPY and closed at 107.22.
On the data front, Japan’s coincident index unexpectedly dropped to 90.5 in March, confounding market forecast for a rise to a level of 95.7 and compared to a revised reading of 95.4 in the previous month. Additionally, the leading economic index fell to 83.8 in March, recording its lowest level since June 2009. In the prior month, the index had recorded a revised level of 91.9.
In the Asian session, at GMT0300, the pair is trading at 107.20, with the USD trading marginally lower against the JPY from yesterday’s close.
Overnight data showed that Japan’s current account surplus narrowed to ¥1971.0 billion in March, more than market expectations and compared to a surplus of ¥3168.8 in the previous month.
The pair is expected to find support at 106.98, and a fall through could take it to the next support level of 106.77. The pair is expected to find its first resistance at 107.52, and a rise through could take it to the next resistance level of 107.85.
Amid no macroeconomic releases in Japan today, investor sentiment would be governed by global macroeconomic factors.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
