USDJPY Movement
For the 24 hours to 23:00 GMT, USD weakened 0.91% against the JPY and closed at 78.37.
The Yen advanced after housing starts in Japan surged 10.3% (YoY) in April, compared to a 5.0% rise in March. Additionally, construction orders expanded 16.2% (YoY) in April, following a 0.3% drop in March.
Further, USD came under pressure in the New York session after initial jobless claims in the US rose unexpectedly to 383,000 in the week ended 26 May 2012, compared to the previous week’s revised figure of 373,000. Adding to concerns, the Institute for Supply Management (ISM) – Chicago reported that its business barometer fell to a reading of 52.7 in May, from a reading of 56.2 in April.
In the Asian session, at GMT0300, the pair is trading at 78.47, with the USD trading 0.13% higher from yesterday’s close.
Data released this morning showed that capital spending in Japan rose 3.3% (YoY) in first quarter of 2012, against the market expectation of a 1.0% rise.
The pair is expected to find support at 78.16, and a fall through could take it to the next support level of 77.84. The pair is expected to find its first resistance at 78.84, and a rise through could take it to the next resistance level of 79.21.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
