USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 0.23% against the JPY and closed at 106.36 on Friday.
In the Asian session, at GMT0400, the pair is trading at 106.33, with the USD trading 0.03% lower against the JPY from Friday’s close, after overnight data showed that Japan’s adjusted merchandise trade surplus widened more-than-anticipated to ¥373.3 billion in January, after recording a surplus of ¥86.8 billion in the previous month. Markets were anticipating the country’s adjusted merchandise trade surplus to drop to ¥143.9 billion. The nation’s exports advanced 12.2% on an annual basis in January, higher than market expectations for a gain of 9.4%. In the previous month, exports had risen 9.3%. Also, the nation’s imports climbed 7.9% YoY in December, beating market estimates for a rise of 7.7%. Imports had advanced 14.9% in the prior month.
The pair is expected to find support at 105.79, and a fall through could take it to the next support level of 105.24. The pair is expected to find its first resistance at 106.64, and a rise through could take it to the next resistance level of 106.94.
Going ahead, traders would focus on Japan’s machine tool orders for January, scheduled to release tomorrow.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving average.
