USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.20% against the JPY and closed at 111.51.
In the Asian session, at GMT0300, the pair is trading at 109.22, with the USD trading 2.06% lower from yesterday’s close.
Overnight data showed that Japan’s unemployment rate registered an unexpected drop to a level of 3.2% in March, compared to market expectations for it to remain steady at 3.3%. Additionally, the nation’s flash industrial production rose above expectations by 3.6% MoM in March, compared to a fall of 5.2% in the prior month. Markets were anticipating industrial production to rise 2.9%. Moreover, retail trade climbed 1.4% MoM in March, higher than market expectations for a rise of 0.5%. In the previous month, retail trade had registered a drop of 2.3%. On the other hand, Japan’s national consumer price index fell 0.1% YoY in March, compared to market expectations for a steady reading. In the prior month, the national consumer price index (CPI) had registered a rise of 0.3%.
Early this morning, the Bank of Japan (BoJ) surprisingly kept benchmark interest rate steady at -0.1% and maintained base money at an annual pace of ¥80 trillion. In a quarterly review of its projections, the central bank slashed its inflation forecasts and pushed back the timing for hitting its 2.0% price target by six months.
The pair is expected to find support at 108.02, and a fall through could take it to the next support level of 106.82. The pair is expected to find its first resistance at 111.16, and a rise through could take it to the next resistance level of 113.1.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
