USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 0.13% against the JPY and closed at 112.36.
On the macro front, Japan’s small business confidence index rose to a level of 49.2 in June, at par with market expectations. The index had recorded a reading of 48.9 in the previous month.
In the Asian session, at GMT0300, the pair is trading at 112.27, with the USD trading 0.08% lower against the JPY from yesterday’s close.
Overnight data indicated that Japan’s seasonally adjusted retail trade dropped 1.6% on a monthly basis in May, surpassing market expectations for a fall of 1.0%. In the prior month, retail trade had registered a rise of 1.4%. Moreover, the nation’s large retailers’ sales fell 0.6% in May, compared to a rise of 1.1% in the previous month, while investors had envisaged a drop of 0.5%.
The pair is expected to find support at 111.92, and a fall through could take it to the next support level of 111.58. The pair is expected to find its first resistance at 112.52, and a rise through could take it to the next resistance level of 112.78.
Going ahead, market participants will keep a close watch on Japan’s jobless rate, national consumer price index and flash industrial production data, all for May, scheduled to release overnight.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
