USDJPY Movement
For the 24 hours to 23:00 GMT, USD weakened 0.51% against the JPY and closed at 79.09, after the release of weak housing data in the US.
The National Association of Realtors (NAR) reported that its pending home sales index in the US dropped 5.5% (MoM) to a reading of 95.5 in April, compared to a revised 3.8% rise in March.
In the Asian session, at GMT0300, the pair is trading at 78.72, with the USD trading 0.47% lower from yesterday’s close.
This morning, industrial production in Japan rose less-than-expected by 13.4% (YoY) in April, against the market expectation of a 13.7% rise. Additionally, labor cash earnings rose 0.8% (YoY) in April, compared to the rise of 0.9% and against the market expectation of 1.1% rise.
The pair is expected to find support at 78.46, and a fall through could take it to the next support level of 78.19. The pair is expected to find its first resistance at 79.24, and a rise through could take it to the next resistance level of 79.77.
Trading trends in the pair today are expected to be determined by the release of construction orders and housing starts data in Japan.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
