USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.39% against the JPY and closed at 104.60, after the Chicago Fed President, Charles Evans suggested better growth prospects for the nation. Positive sentiment for the greenback was also fuelled after the Fed, in its Beige Book, highlighted a positive outlook for growth in the US economy in the coming months.
In economic news, an official report revealed that machine tool orders in Japan rose 28.0% (YoY) in December, compared to a 15.4% (YoY) increase registered in the previous month.
In the Asian session, at GMT0400, the pair is trading at 104.76, with the USD trading 0.15% higher from yesterday’s close. Early morning, in Japan, a report revealed that machine orders in the nation rose 16.6% (YoY) in November, more than analysts’ call for a rise of 11.7% and compared to a 17.8% (YoY) increase witnessed in October. Another report showed that the nation’s tertiary industry index rose 0.6% (MoM) in November, lesser than market expectations for a rise of 0.8% and compared to a 0.9% drop registered in the previous month.
The pair is expected to find support at 104.33, and a fall through could take it to the next support level of 103.90. The pair is expected to find its first resistance at 105.06, and a rise through could take it to the next resistance level of 105.37.
Amid lack of economic releases from Japan, during the later part of the day, traders would likely focus on Japan’s consumer confidence index, due to release on Friday.
The currency pair is trading above its 20 Hr and 50 Hr moving average.
