USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 1.85% against the JPY and closed at 109.90.
Data indicated that Japan’s preliminary machine tool orders plunged 33.6% on an annual basis in December, following a drop of 37.9% in the prior month.
In the Asian session, at GMT0400, the pair is trading at 109.93, with the USD trading slightly higher against the JPY from yesterday’s close.
Overnight data showed that Japan’s machinery orders unexpectedly advanced 5.3% on a yearly basis in November, defying market expectations for a fall of 5.4%. In the previous month, machinery orders had recorded a decline of 6.1%. Meanwhile, the nation’s producer price index climbed 0.9% on a yearly basis in December, following a rise of 0.1% in the prior month.
The pair is expected to find support at 109.81, and a fall through could take it to the next support level of 109.7. The pair is expected to find its first resistance at 110.02, and a rise through could take it to the next resistance level of 110.12.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
