USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.60% against the JPY and closed at 120.67.
In the Asian session, at GMT0300, the pair is trading at 120.91, with the USD trading 0.19% higher from yesterday’s close.
Earlier today, data showed that preliminary estimate of Japan’s Q1 GDP expanded 2.4% in annualized terms, but growth was inflated by huge build up of inventory, as business investment failed to gather momentum. Markets were expecting annualized GDP growth of 1.5%, compared to a revised 1.1% expansion recorded in the previous quarter.
The pair is expected to find support at 120.16, and a fall through could take it to the next support level of 119.41. The pair is expected to find its first resistance at 121.32, and a rise through could take it to the next resistance level of 121.74.
Going forward, investors look forward to Japan’s Nomura/JMMA manufacturing PMI data, scheduled tomorrow for further cues.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
