USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 0.66% against the JPY and closed at 113.10.
In the Asian session, at GMT0300, the pair is trading at 113.13, with the USD trading slightly higher against the JPY from yesterday’s close.
Overnight data showed that Japan’s (BOP basis) trade deficit widened more than expected to ¥219.3 billion in August, compared to a deficit of ¥1.0 billion in the prior month. Markets participants had anticipated the nation’s trade deficit to expand to ¥208.0 billion.
The pair is expected to find support at 112.67, and a fall through could take it to the next support level of 112.21. The pair is expected to find its first resistance at 113.74, and a rise through could take it to the next resistance level of 114.35.
Looking forward, investors would focus on Japan’s machinery orders for August, slated to release overnight.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
