For the 24 hours to 23:00 GMT, USD weakened 0.43% against the JPY and closed at 79.37. The Yen rose against greenback, amid speculation that Japanese companies would repatriate their overseas earnings ahead of the completion of the second quarter.
In the Asian session, at GMT0300, the pair is trading at 79.33, with the USD trading 0.05% lower from yesterday’s close.
Data released this morning in Japan showed that the Nomura/JMMA manufacturing purchasing manager index fell to 49.9 in June, compared to a reading of 50.7 in May. Separately, consumer price index rose 0.2% (YoY) in May, in line with the market expectation. Additionally, industrial production fell more-than-expected by 3.1% (MoM) in May, compared to the market expectation of a 2.8% contraction. Moreover, the unemployment rate edged down to 4.4% in May, following a 4.6% rise recorded in the previous month.
The pair is expected to find support at 79.15, and a fall through could take it to the next support level of 78.97. The pair is expected to find its first resistance at 79.50, and a rise through could take it to the next resistance level of 79.67.
Trading trends in the pair today are expected to be determined by the release of housing starts and construction orders data in Japan.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.