USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 0.46% against the JPY and closed at 110.56.
The Paris-based international organization (OECD) slashed Japan’s growth forecast for 2019 to 0.7% from 0.8% and to 0.6% from 0.7% for 2020, citing effects of declining trade flows in the economy.
In the Asian session, at GMT0300, the pair is trading at 110.55, with the USD trading slightly lower against the JPY from yesterday’s close.
Overnight data indicated that Japan’s merchandise (total) trade surplus narrowed to ¥60.4 billion, undershooting market expectations for a surplus of ¥232.7 billion. The nation had posted a surplus of ¥528.5 billion in the prior month. Moreover, the nation’s machinery orders declined 0.7% on a yearly basis in March, less than market anticipation for a fall of 3.4%. In the previous month, machinery orders had registered a fall of 5.5%.
The pair is expected to find support at 110.19, and a fall through could take it to the next support level of 109.83. The pair is expected to find its first resistance at 110.79, and a rise through could take it to the next resistance level of 111.03.
Looking ahead, traders would keep an eye on Japan’s Nikkei manufacturing PMI for May, slated to release overnight.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
