For the 24 hours to 23:00 GMT, the USD declined 0.22% against the JPY and closed at 106.17.
In the Asian session, at GMT0300, the pair is trading at 106.19, with the USD trading marginally higher against the JPY from yesterday’s close.
Overnight data showed that Japan (BOP basis) posted a trade surplus of ¥759.3 billion in June, compared to a deficit of ¥650.9 billion in the previous month. Market participants had anticipated to record a trade surplus of ¥691.4 billion. Additionally, housing loans climbed 2.2% on an annual basis in 2Q19. In the prior quarter, housing loans had advanced 2.4%.
The pair is expected to find support at 105.68, and a fall through could take it to the next support level of 105.18. The pair is expected to find its first resistance at 106.51, and a rise through could take it to the next resistance level of 106.83.
Going forward, investors would await Japan’s gross domestic product for the second quarter, scheduled to release overnight.
The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.
