For the 24 hours to 23:00 GMT, USD strengthened 0.23% against the JPY and closed at 78.61, after the Bank of Japan refrained from loosening monetary policy.
The Japanese Yen also came under pressure, after the consumer sentiment index in Japan declined to a reading of 39.7 in July, from a reading of 40.4 in June. Additionally, preliminary machine tool orders in the nation fell 6.8% (YoY) in July, from a 15.5% slump in June.
In the Asian session, at GMT0300, the pair is trading at 78.60, with the USD trading flat from yesterday’s close.
The pair is expected to find support at 78.33, and a fall through could take it to the next support level of 78.06. The pair is expected to find its first resistance at 78.83, and a rise through could take it to the next resistance level of 79.06.
Investors await Japanese industrial production data later today, which is expected to show a fall of 0.1% (MoM) in June. The Yen is also expected to take cues from the release of Bank of Japan July economic survey and capacity utilization data in Japan, in the day ahead.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.