USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened marginally against the JPY and closed at 124.39. However, gains in the Yen were capped after Japan indicated that the total merchandise trade deficit in July unexpectedly expanded to Yen 268.10 billion, from a revised deficit of Yen 70.50 billion in the previous month.
In the Asian session, at GMT0300, the pair is trading at 124.31, with the USD trading 0.07% lower from yesterday’s close. The yen strengthened after Japan’s All Industries Activity Index rose to a seasonally adjusted 0.3%, albeit at a lower than expected rate, from a fall of 0.5% in the preceding month.
The pair is expected to find support at 124.15, and a fall through could take it to the next support level of 123.99. The pair is expected to find its first resistance at 124.5, and a rise through could take it to the next resistance level of 124.69.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
