For the 24 hours to 23:00 GMT, the USD rose 0.46% against the JPY and closed at 106.53.
In the Asian session, at GMT0300, the pair is trading at 106.50, with the USD trading marginally lower against the JPY from yesterday’s close.
Overnight data showed that Japan’s unemployment rate unexpectedly fell to 2.2% in July, its lowest level in 27 years and compared to market expectations of a steady reading. In the prior month, unemployment rate stood at 2.3%. Moreover, the nation’s preliminary industrial production rose 1.3% on a monthly basis in July, surpassing market expectations for an advance of 0.3%. In the previous month, industrial production had registered a drop of 3.3%.
On the other hand, Japan’s retail trade declined 2.3% on a monthly basis in July, falling at its quickest pace in 3 years and more than market anticipation for a fall of 0.9%. In the previous month, retail trade had recorded a flat reading. Also, the large retailer’s sales fell 4.8% on a monthly basis in July, more than market consensus for a drop of 4.5%. In the previous month, large retailer’s sales had declined 0.5%.
The pair is expected to find support at 105.99, and a fall through could take it to the next support level of 105.49. The pair is expected to find its first resistance at 106.84, and a rise through could take it to the next resistance level of 107.19.
Going forward, traders would closely monitor Japan’s housing starts and construction orders for July, slated to release in a while.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
