USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 0.09% against the JPY and closed at 101.99.
In the Asian session, at GMT0300, the pair is trading at 102.13, with the USD trading 0.14% higher against the JPY from yesterday’s close.
Overnight data showed that Japan’s unemployment rate unexpectedly dropped to a twenty-one-year low level of 3.0% in July, compared to market expectations for it to remain steady at a level of 3.1%. Additionally, the nation’s retail trade climbed by 1.4% on a monthly basis in July, more than market expectations for an advance of 0.8%. In the prior month, retail trade had recorded a revised rise of 0.3%. Moreover, household spending declined less-than-anticipated by 0.5% YoY in July, compared to market expectations for a drop of 1.4% and following a revised drop of 2.3% in the prior month.
The pair is expected to find support at 101.78, and a fall through could take it to the next support level of 101.42. The pair is expected to find its first resistance at 102.44, and a rise through could take it to the next resistance level of 102.74.
Investors would focus on Japan’s flash industrial production data for July, due to release overnight, to gauge the strength in the nation’s economy.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
