USD/JPY: Yen Losses Ground On Disappointing Japanese Core Machine Orders
On Friday, the USD strengthened 0.97% against the JPY and closed at 95.82.
In economic news, Japanese current economic situation index edged up to a reading of 53.2 in February, from a reading of 49.5 in January. Similarly, the outlook index rose to a reading of 57.7 in February, from a reading of 56.5 recorded in the previous month.
In its monthly report, the Bank of Japan (BoJ) indicated that exports are expected to improve as overseas economies gradually emerge from the deceleration phase. Public investment and housing investment are expected to continue trending upward, while business fixed investment is projected to remain somewhat weak. Additionally, industrial production is expected to show a pickup in the April-June quarter after remaining flat in January-March.
In the Asian session, at GMT0400, the pair is trading at 96.11, with the USD trading 0.30% higher from Friday’s close, after data released in Japan this morning indicated that the seasonally adjusted core machine orders plunged 13.1% (MoM) in January, compared to a 2.8% rise in December. Separately, the annual M3 money stock climbed 2.4% in February, compared to a 2.3% rise reported last month.
The pair is expected to find support at 95.38, and a fall through could take it to the next support level of 94.65. The pair is expected to find its first resistance at 96.71, and a rise through could take it to the next resistance level of 97.30.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.