For the 24 hours to 23:00 GMT, the USD rose 0.15% against the JPY and closed at 108.77.
On the data front, Japan’s consumer confidence index declined to its lowest level in 5.5 years to level of 37.8 in July, overshooting market expectations for a fall to a level of 38.4. The index had recorded a reading of 38.7 in the previous month. Moreover, the nation’s the nation’s construction orders fell 4.2% on a yearly basis in June, compared to a decline of 16.9% in the previous month. On the flipside, housing starts unexpectedly climbed of 0.3% on an annual basis in June, defying market consensus for a drop of 2.2%. In the prior month, housing starts had registered a fall of 8.7% in the previous month.
In the Asian session, at GMT0300, the pair is trading at 109.15, with the USD trading 0.35% higher against the JPY from yesterday’s close.
The pair is expected to find support at 108.65, and a fall through could take it to the next support level of 108.16. The pair is expected to find its first resistance at 109.48, and a rise through could take it to the next resistance level of 109.81.
Moving forward, investors would closely monitor the Bank of Japan’s June meeting minutes, slated to release overnight.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
