For the 24 hours to 23:00 GMT, the USD rose 0.16% against the JPY and closed at 111.30.
Yesterday, the Japanese Government raised its assessment of the economy for the first time in six months, noting that the economy is on a gradual recovery path aided by increased consumer spending and capital investment.
In the Asian session, at GMT0300, the pair is trading at 111.36, with the USD trading marginally higher against the JPY from yesterday’s close.
Overnight data revealed that Japan’s preliminary Nikkei manufacturing PMI dropped to a level of 52.0 in June, reducing the nation’s manufacturing sector growth to its weakest level in seven months. In the prior month, the PMI had recorded a reading of 53.1.
The pair is expected to find support at 111.06, and a fall through could take it to the next support level of 110.75. The pair is expected to find its first resistance at 111.56, and a rise through could take it to the next resistance level of 111.75.
Going forward, Japan’s jobless rate, consumer price index, industrial production and retail trade data, all slated to release next week, will attract market attention.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
